What laws govern the covenants not to compete within the Floors To Go agreement?

According to the 2025 Floors To Go Franchise Disclosure Document, the laws governing the covenants not to compete are determined by the jurisdiction in which any action to enforce such covenants is initiated. This means that the specific state or legal authority where Floors To Go seeks to legally uphold the non-compete agreement will dictate the laws that apply. The document specifies that this determination is made without considering the principles related to choice or conflict of laws.

In practical terms, this clause means that the enforceability and interpretation of the non-compete agreement can vary significantly depending on where Floors To Go decides to pursue legal action. Franchisees need to be aware that non-compete laws differ widely from state to state. Some states are more lenient towards enforcing these agreements, while others have stricter regulations or may even prohibit them altogether.

For a prospective Floors To Go franchisee, this highlights the importance of understanding the non-compete laws in their specific state or region. It would be prudent to consult with a legal professional to assess the potential impact and enforceability of the non-compete clause in their particular jurisdiction. This is especially crucial given that the FDD indicates that Florida law governs the agreement in general, except for specific issues like franchise registration and non-compete clauses, which are subject to the laws of the franchisee's location.