Is Floors To Go obligated to defend the Marks licensed with the Floors To Go System?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
During the operation of the FTG System, FTG's obligations are limited to selecting floor covering and window treatment products that meet FTG's quality standards, negotiating with vendors to offer favorable pricing to FTG members (see Section 5 of the
Membership Agreement), controlling the management and disbursement of the funds received as Advertising Fees (see Sections 5.2 and 6.4 of the Membership Agreement), and providing certain approved artwork, print media presentations, direct mail flyers, promotional materials, point-of-sale formats, audio and video presentations for our approved advertising programs and information we develop for your use in marketing and conducting local advertising for your FTG Showroom at a reasonable cost to you (see Sections 5.2 and 6.4 of the Membership Agreement).
FTG is also obligated to use its commercially reasonable efforts to:
- (1) maintain the reputation of the FTG System;
- (2) maintain a wide variety of floor covering and window treatment products at favorable prices; and
- (3) defend the Marks licensed with the FTG System.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–27)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, Floors To Go has obligations during the operation of the FTG System. These obligations include using commercially reasonable efforts to maintain the reputation of the FTG System, maintain a wide variety of floor covering and window treatment products at favorable prices, and defend the Marks licensed with the FTG System.
For a prospective franchisee, this means that Floors To Go is expected to take action to protect its trademarks and service marks associated with the Floors To Go System. This obligation helps to ensure that the brand's integrity and reputation are upheld, which benefits all franchisees operating under the Floors To Go name.
The FDD specifies that Floors To Go's obligations are limited to the items listed. While Floors To Go is expected to defend the Marks, the extent and nature of these efforts are qualified by the term "commercially reasonable efforts." This suggests that Floors To Go has some discretion in determining the appropriate level of defense, balancing the costs and benefits of legal action or other protective measures.
This obligation is a positive aspect for franchisees as it indicates that Floors To Go is invested in protecting its brand identity. However, franchisees should be aware that the term "commercially reasonable efforts" allows Floors To Go some flexibility in how it chooses to defend the Marks, and it does not guarantee a specific outcome in every situation.