What payments must be made to Floors To Go as part of the conditions for approval of a transfer?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Membership Agreement | Summary | |
|---|---|---|---|
| m. | Conditions for our approval of transfer | Section 11.1 | Includes payment of monies owed and fee, no breach, release of liabilities, transferee suitability, execution of new agreement. The general release required as a condition of renewal, sale and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. |
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the conditions for approval of a transfer include the payment of monies owed and a transfer fee.
In addition to these payments, the transfer conditions also stipulate that the franchisee must not be in breach of the agreement, must provide a release of liabilities, ensure the transferee is suitable, and execute a new agreement. These conditions ensure that Floors To Go maintains control over who operates its franchises and that the new franchisee meets their standards.
Prospective franchisees should be aware of these transfer conditions, as they will impact the ability to sell their franchise in the future. Understanding the financial obligations and other requirements for transfer is crucial for long-term planning and investment decisions. Franchisees should carefully review Section 11.1 of the Membership Agreement, as referenced in the table, to fully understand the conditions for transfer approval.