What is a 'no-recruiting provision' in the context of Floors To Go's franchise agreements?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
The Attorney General asserted that FTG included language in its franchise agreements that restricted a franchisee's ability to solicit or hire workers from FTG or another franchisee (no-recruiting provision). On September 23, 2019, FTG voluntarily entered into an Assurance of Discontinuance with the State of Washington agreeing that it (i) will no longer include no-recruiting provisions in any of its future membership agreements, (ii) no longer enforce no-recruiting provisions in any of its existing membership agreements, (iii) will not seek to intervene or defend in any way the legality of any no-recruiting provision, and (iv) will endeavor to amend all existing membership agreements with members in the State of Washington to remove any no-recruiting provisions in those members' existing membership agreements.
Source: Item 3 — LITIGATION (FDD page 10)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, a 'no-recruiting provision' in the context of its franchise agreements refers to a restriction on a franchisee's ability to solicit or hire workers from Floors To Go or another franchisee.
Floors To Go included this type of language in its franchise agreements, which led to an inquiry from the Attorney General. On September 23, 2019, Floors To Go entered into an Assurance of Discontinuance with the State of Washington. As part of this agreement, Floors To Go agreed to several conditions.
Specifically, Floors To Go agreed that it would no longer include no-recruiting provisions in any of its future membership agreements, nor would it enforce such provisions in existing agreements. Additionally, Floors To Go committed to not intervening in any legal challenges to the legality of no-recruiting provisions and would endeavor to amend existing membership agreements in Washington to remove these provisions. This means that current and future Floors To Go franchisees will not be subject to restrictions on hiring or soliciting employees from other franchisees or from Floors To Go itself.