Will Floors To Go be liable for any debt of the franchisee?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
om 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. It is understood between us that you are an independent contractor and are in no way authorized to make any contract, agreement, warranty, or representation on behalf of us, or to create any obligation, express or implied, on our behalf. The parties agree that this Agreement shall not create a fiduciary relationship between us. We will not be liable for any act, omission, contract, debt, tax, or any other obligation of yours. You shall prominently display at your place of business a certificate from us stating that your business is operated by you independent of and separate from Floors To Go, LLC. We and you shall refrain from making any representation or creating any impression upon any third party or the public that they are partners, associates, joint employers, joint venturers, subsidiaries, principal and agent, or are in any way the agents, fiduciaries or instrumentalities of each other in any sense.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, Floors To Go will not be liable for any debt, act, omission, contract, tax, or any other obligation of the franchisee. The FDD states that the franchisee is an independent contractor and is not authorized to make any agreement on behalf of Floors To Go or create any obligation on their behalf.
Floors To Go requires franchisees to display a certificate at their place of business stating that the business is operated independently and separately from Floors To Go, LLC. Both Floors To Go and the franchisee must refrain from creating any impression that they are partners, agents, or subsidiaries of each other.
This arrangement is typical in franchising, where franchisees operate as independent business owners. Prospective Floors To Go franchisees should understand that they are responsible for all debts and obligations incurred in operating their franchise. This independence also means that franchisees are responsible for their own employees and Floors To Go has no relationship with the franchisee's employees.