What non-competition covenants are in place for Floors To Go franchisees during the term of the franchise?

According to the 2025 Floors To Go Franchise Disclosure Document, during the term of the franchise agreement, franchisees are subject to non-competition covenants. Specifically, Floors To Go franchisees are prohibited from participating in other marketing and merchandising systems. This restriction is outlined in Subsection 9.2(d) and Section 9.4 of the Membership Agreement and is subject to applicable state law.

In practical terms, this means that while operating a Floors To Go franchise, a franchisee cannot be involved in any competing business that utilizes different marketing or merchandising approaches. This is a fairly standard practice in franchising, designed to protect the brand's identity and market position. The non-compete aims to ensure that franchisees focus their efforts solely on the Floors To Go system and do not divert resources or knowledge to other ventures that could potentially undermine the franchise.

It is important to note that the enforcement and specific terms of non-competition agreements can vary significantly depending on state law. Therefore, a prospective Floors To Go franchisee should carefully review Subsection 9.2(d) and Section 9.4 of the Membership Agreement, along with the relevant state laws, to fully understand the scope and limitations of the non-compete covenant during the franchise term. Understanding these restrictions is crucial for making an informed decision about investing in a Floors To Go franchise.