Is a Floors To Go franchisee's assignee bound by the jury trial waiver?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
assignee, successor, heir or personal representative of yours will join together with any other franchisee of FTG in bringing any litigation against FTG, including FTG's affiliates, successors, assigns and designees of each, and their respective officers, directors, employees, agents, attorneys, owners, designees and representatives of all of the foregoing (the "FTG Parties"); nor will you maintain any claim against any of the FTG Parties in a class action, whether as a representative or as a member of a class or purported class; nor will you seek to consolidate, or consent to the consolidation of, all or any part of any litigation by either of them against any of the FTG Parties with any other litigation against any of the FTG Parties.
- 16.3.
Waiver of Jury Trial.
Neither you, or any assignee, successor, heir or personal representative of yours, nor we shall seek a jury trial in any lawsuit, proceeding, counterclaim or any other litigation procedure based upon or arising out of this Agreement, or any related agreement, or the dealings or the relationship between or among such persons or entities, or any of them.
Neither party nor any such other person or entity will seek to consolidate any such action, in which a jury trial has been waived, with any other action in which a jury trial cannot or has not been waived.
The provisions of this Section have been fully discussed by the parties hereto, and the provisions hereof shall be subject to no exceptions.
No party has in any way agreed with or represented to any other party that the provisions of this Section will not be fully enforced in all instances.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the jury trial waiver extends to the franchisee's assignee. Specifically, Section 16.3 of the Membership Agreement states that neither the franchisee, nor any assignee, successor, heir, or personal representative of the franchisee, will seek a jury trial in any legal proceeding arising out of the agreement or the relationship with Floors To Go. This waiver applies to any lawsuit, proceeding, counterclaim, or other litigation procedure.
This provision means that if a franchisee transfers their Floors To Go franchise to an assignee, that assignee is also bound by the agreement to waive their right to a jury trial in disputes with Floors To Go. This could significantly impact the assignee's legal options in case of a dispute, as they would be required to resolve the matter through a bench trial (trial by judge) rather than a jury trial. Jury trials are often preferred by plaintiffs, as they can sometimes be more sympathetic to individual franchisees than a judge might be.
The FDD emphasizes that the jury trial waiver has been fully discussed by the parties and will be subject to no exceptions. It also states that no party has made any representations that the waiver will not be fully enforced. This underscores the importance of understanding and considering the implications of this waiver before entering into a franchise agreement with Floors To Go. Prospective franchisees should carefully evaluate this provision and seek legal counsel to fully understand their rights and obligations.
It is important to note that the enforceability of jury trial waivers can vary by state. For example, the South Dakota Amendment to the Agreement states that any provision that provides that the parties waive their right to jury trial may not be enforceable under the laws of the State of South Dakota law. Therefore, franchisees should be aware of any state-specific amendments or laws that may affect the enforceability of the jury trial waiver in their jurisdiction.