Where will the location of the Floors To Go franchisee's principal place of business be specified?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
As part of the FTG System, FTG will grant territorial rights to you which are officially identified in Schedule "A" of the Membership Agreement. FTG will not open any companyowned Floors To Go Showrooms or permit other franchised Floors To Go Showrooms to be located within your territory. Your territory will be determined based on the factors that we deem relevant, which might include population, traffic flow, presence of businesses, location of competitors (including other showrooms), demographics, and other market conditions. You agree to conduct your business at the location designated in Schedule "A" of the Membership Agreement and in no other location. Schedule "A" to the Membership Agreement will include the location of your principal place of business (the approved Showroom location) and a description of your territory. If your territory is defined as a radius, it will be measured from your approved Showroom. Otherwise, the boundaries of a territory are typically designated by streets or by the political boundaries of cities as they exist on the date the Membership Agreement is signed.
Source: Item 12 — TERRITORY (FDD pages 27–30)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the location of a franchisee's principal place of business, also referred to as the approved Showroom location, will be specified in Schedule "A" of the Membership Agreement. The franchisee is required to conduct business at this designated location and no other. Schedule "A" will include both the location of the principal place of business and a description of the franchisee's territory. If the territory is defined by a radius, the measurement will originate from the approved Showroom location. Otherwise, the territory boundaries are typically designated by streets or the political boundaries of cities as they exist when the Membership Agreement is signed.
This means that before opening a Floors To Go franchise, prospective franchisees will have a clearly defined location for their showroom specified in their agreement. This is a standard practice in franchising, ensuring both the franchisor and franchisee are aligned on the business's physical location. The territory description in Schedule "A" is also crucial, as it sets the boundaries within which the franchisee can primarily operate, although Floors To Go does not restrict franchisees from soliciting or accepting orders from outside their territory.
Floors To Go retains the right to modify the territory upon renewal or relocation of the franchise, which is a common clause in franchise agreements. The FDD states that if the territory is larger than the then-current standard, Floors To Go may require the franchisee to accept a smaller territory upon renewal or transfer. This condition highlights the importance of understanding the potential for territory adjustments over the term of the franchise agreement.
While franchisees can request to move their Showroom to another location, it is subject to several conditions, including providing ninety days' prior written notice, ensuring the new location is within the existing territory, complying with the Membership Agreement terms, and agreeing to a territory revision if required by Floors To Go. The relocation also requires written approval from Floors To Go, and the franchisee must continue paying monthly fees during the relocation period. These stipulations ensure that any relocation aligns with Floors To Go's overall strategy and protects the brand's interests.