What is the Floors To Go franchisee's obligation regarding payment to manufacturers?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
non-approved merchandise the "Floors To Go" label or any other evidence of the FTG Mark, including our private names for merchandise.
- 7.6. Working Capital. You agree to maintain sufficient working capital to pay all obligations incurred which relate to your Showroom when the same are due. Failure to pay such obligations when due could constitute an event of default under this Agreement.
- 7.7. Relationship of Parties.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, franchisees are responsible for maintaining sufficient working capital to meet all obligations related to their showroom, including payments to vendors and manufacturers, when they are due. Failure to meet these payment obligations could lead to a default under the Franchise Agreement. Floors To Go will regularly inform franchisees about approved vendors and manufacturers, product selections, pricing, and distribution arrangements.
Floors To Go franchisees must take sole responsibility for the performance of all obligations arising out of the operation of their business. This includes, but is not limited to, workers' compensation, real estate, sales, payroll, franchise, income, personal property, and gross receipt taxes levied or assessed by reason of such operation. The franchisee's business operations are separate and distinct from Floors To Go, LLC.
Floors To Go franchisees are independent contractors and are not authorized to make any contract, agreement, warranty, or representation on behalf of Floors To Go, or to create any obligation, express or implied, on their behalf. Floors To Go will not be liable for any act, omission, contract, debt, tax, or any other obligation of the franchisee. The franchisee must prominently display a certificate stating that their business is operated independently of Floors To Go, LLC.
Brokerage fees from certain floor and window covering manufacturers utilized by the franchisees are recognized monthly based on the total amount of purchases made by the member franchisees and the terms of the contract. The performance obligation for the franchisees and manufacturers are considered to be met over the terms of the franchise agreement.