What happens to rights arising from the Floors To Go franchisee's use of the Marks?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
to use such trade names, trademarks, service marks, trade secrets, methods, procedures, or advertising techniques.
4.1. Ownership Rights Defined.
- a. Your use of our service marks, trade names, and trademarks, including, but not limited to, Floors To Go and design and Floors To Go Your Hometown Flooring Center and design (collectively referred to as the "FTG Marks" or the "Marks") shall inure to our sole benefit. We are the sole owner of all right, title, and interest in and to the FTG Marks and goodwill attributed to the use of the FTG Marks. You expressly disclaim any and all rights, title, and interest in and to the FTG Marks licensed for your use and to any additional marks introduced by us after execution of this Agreement.
- b. All rights in and to the Marks, including, without limitation, trademark, design, patent and copyright rights, other than the user trademark rights specifically granted herein, are reserved to us. Any such rights which may arise in connection with your use of the Marks shall, without any requirement of notice or deed, be our property; provided, however, that you shall have the right, to the extent necessary in exercising your rights as a member hereunder, to the use of such rights during the Original Term and any Renewal Term of this Agreement only in Your Territory.
- c. Whenever requested by us, whether during the term or thereafter, you shall execute such documents and instruments as our legal counsel may deem necessary or appropriate to confirm our ownership of all rights in and to the Marks, to maintain the validity of the Marks, or to obtain or maintain registrations thereof.
- d. You agree that the nature and quality of the goods sold by you or on your behalf in connection with Marks shall be subject to our approval, and we shall have the right to inspect the quality of the goods sold under Marks.
- e. You may not transfer or assign to anyone, including your employees or independent contractors, your rights to use the Marks or your rights to participate in the FTG System or any of the FTG programs.
- 4.2. Use of the FTG Marks and Names. You shall confine your use of the FTG Marks to the sale of products and services authorized by us, unless otherwise approved in writing. You shall use the FTG Marks only in connection with the FTG System, and such use is specifically limited to your operation within Your Territory. Use of the FTG Marks or reference to your FTG location for any other business, event, or purpose is strictly prohibited, except with our prior written consent. If you or an affiliate of yours owns or operates an Abbey Carpet Showroom or a The Floor Club Showroom, you are expressly prohibited from using the Abbey Carpet name, marks or business address or The Floor Club name, marks or business address in any FTG advertisement or other form of publicity, which may include newspaper and radio advertisements, signs, billboards, flyers, coupons or similar items. You specifically acknowledge and agree that you are not permitted to use our corporate name or trade names or the FTG Marks, or any colorable imitations of those FTG Marks, for identifying, referencing, linking or otherwise connecting to any Internet Web Site or Domain Name other than those Internet Web Sites and Domain Names as are presently, or may be subsequently, owned by or registered to us.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, any rights arising from a franchisee's use of the Floors To Go Marks automatically become the property of Floors To Go. The franchisee's use of the Floors To Go marks, such as the Floors To Go name and logo, benefits Floors To Go exclusively. Floors To Go owns all rights, titles, and interests in these marks, including any goodwill generated through their use. The franchisee explicitly gives up any claim to these licensed marks, including any additional marks introduced by Floors To Go after the franchise agreement is signed.
This means that while franchisees have the right to use the Floors To Go Marks during the term of their agreement within their designated territory, they do not gain any ownership or lasting rights to the marks themselves. All rights, including trademark, design, patent, and copyright rights, remain with Floors To Go. If a franchisee develops any variation of the Floors To Go Marks, it automatically becomes the property of Floors To Go. The franchisee's use of the marks always benefits Floors To Go, and they cannot acquire any rights beyond the licensed use provided in the agreement.
Floors To Go retains the exclusive right to seek trademark protection for the Marks, and franchisees cannot seek or acquire any registration or interest in the Marks. Franchisees must also assist Floors To Go in protecting the Marks and must report any infringements. Upon termination of the franchise agreement, the franchisee must immediately cease using the Floors To Go Marks and remove them from all signage and advertising. They must also cancel any assumed name registrations containing the Floors To Go name. This ensures that Floors To Go maintains complete control over its brand and prevents any potential confusion or misuse of its Marks after a franchise agreement ends.