Can Floors To Go modify the territory upon relocation of a Floors To Go franchise?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
e name or service marks within your territory designated in Schedule "A" to the Membership Agreement.
On renewal or relocation of a franchise, the territory may be modified. Depending on the then-current demographics of the territory, and on our then-current standards for territories, if the territory is larger than our then-current standard territory, we may require you or the transferee to accept a renewal territory or a transfer territory smaller than your then-current territory.
You have no options, rights of first refusal, or similar rights to acquire additional franchises. If after the execution of your initial Membership Agreement you wish to open additional showrooms using the FTG System, and even if the proposed showrooms are within your territory, you must enter into a separate Membership Agreement for each such showroom.
Source: Item 12 — TERRITORY (FDD pages 27–30)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the territory of a franchise may be modified upon relocation. The FDD states that when a Floors To Go franchise is renewed or relocated, the territory associated with that franchise may be subject to change.
Specifically, Floors To Go may require a franchisee to accept a smaller territory upon renewal or relocation if the existing territory is larger than the company's then-current standard for territories. This decision is based on the demographics of the territory at the time of renewal or relocation, as well as Floors To Go's current standards for territory size.
This policy has implications for franchisees considering relocating their Floors To Go business. While franchisees have the right to move their showroom to another location within their existing territory, this is contingent upon providing ninety (90) days' prior written notice, ensuring the new location complies with the Membership Agreement, and agreeing to a revision of their existing territory as determined by Floors To Go. This means that a franchisee might lose part of their original territory if they choose to relocate, potentially impacting their future business and revenue potential. Floors To Go's approval in writing is required for any relocation.