Does a Floors To Go member acquire ownership of the FTG System?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
One of our most valued assets is our intellectual property rights in our name. As such, at no time will you be permitted or authorized, directly or indirectly, to take any action to contest our ownership, title, right, or interest in the "Floors To Go" trade names, trademarks, service marks, trade secrets, methods, procedures, or advertising techniques which are a part of our business, or to contest our sole right to register, use, or license others 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.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go FDD, a member does not acquire ownership of the FTG System. The FDD states that the franchisee's use of Floors To Go's service marks and trade names, including Floors To Go and design, benefits Floors To Go exclusively. Floors To Go retains sole ownership of all rights, titles, and interests in the FTG Marks and the goodwill associated with them.
The agreement explicitly states that the franchisee disclaims any rights, titles, or interests in the FTG Marks licensed for their use, including any additional marks introduced after the agreement is signed. All rights to the Marks, including trademark, design, patent, and copyright rights, are reserved to Floors To Go, except for the user trademark rights specifically granted in the agreement. Any rights that arise from the franchisee's use of the Marks automatically become the property of Floors To Go without requiring notice or a formal deed.
Floors To Go may request the franchisee to execute documents confirming Floors To Go's ownership of all rights in the Marks to maintain their validity or registrations. This underscores that franchisees are granted a limited right to use the FTG System's intellectual property but do not gain any ownership stake in it. This arrangement is typical in franchising, where the franchisor maintains control over its brand and system while allowing franchisees to operate under its established framework.