Does the Floors To Go non-compete agreement apply during any renewal term?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
The 2025 Floors To Go Franchise Disclosure Document states that a franchisee's right to use Floors To Go's service marks, trade names, and trademarks extends to both the original term and any renewal term of the agreement, but only within the franchisee's territory. Specifically, this applies to the "FTG Marks", which include Floors To Go and design and Floors To Go Your Hometown Flooring Center and design. This indicates that the non-compete obligations, particularly concerning the use of Floors To Go's intellectual property, are intended to remain in effect during any renewal term, subject to the geographical limitations of the franchisee's territory.
This condition ensures that even during a renewal, a franchisee must continue to adhere to the brand's standards and protect its intellectual property. It also implies that upon termination or expiration of the agreement, the franchisee must cease using the Floors To Go marks, as detailed in Item 23, which outlines the steps a franchisee must take to remove the FTG Marks from their showroom and cease using the Floors To Go system.
For a prospective franchisee, this means that the obligations to protect and properly use Floors To Go's trademarks and trade names continue for as long as the franchise agreement is in effect, including any renewal periods. However, the franchisee's right to use these marks is limited to their designated territory. Understanding the specifics of the non-compete agreement, including its duration, scope, and geographic limitations, is crucial for any potential franchisee to ensure they can comply with these obligations both during the term of the agreement and after its termination or expiration.