Does Floors To Go place any restrictions on the goods and services a franchisee may offer?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
guaranty, confidentiality or non-competition agreement.
ITEM 16. RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
With regard to the FTG System, there are no restrictions on the goods and services which may be offered by you, including competing floor covering products, except that you may not participate in a competing marketing and merchandising system which offers products similar to those offered by the FTG System while a member of the FTG System.
The FTG System may be supplemented, improved, and otherwise modified from time to time by FTG. With regard to the FTG System, the Pricing Manual will be regularly updated to identify the selected vendors, floor coverings and prices currently available to FTG System members. You must comply with all of FTG's reasonable requirements in that regard, including offering and selling new or different products or services as specified by FTG.
Section 7.1 of the Membership Agreement requires you to purchase, for each of your Showrooms, a minimum of $350,000 or 80% of your total floor covering and window treatment purchases, whichever is greater, through the FTG System during the calendar year following the opening of each such Showroom. Only those floor covering and window
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 33)
What This Means (2025 FDD)
According to the 2025 Floors To Go FDD, franchisees generally have the freedom to offer a variety of goods and services, including competing floor covering products, with one significant restriction. Floors To Go prohibits franchisees from participating in any competing marketing and merchandising systems that offer products similar to the Floors To Go system while they are members of the Floors To Go System. This means a franchisee cannot simultaneously be part of another franchise or buying group that directly competes with Floors To Go's offerings.
Floors To Go retains the right to modify and update the FTG System, which may include introducing new or different products and services. Franchisees are required to comply with Floors To Go's requirements in this regard, ensuring uniformity and adherence to the brand's evolving standards. Additionally, franchisees must purchase a minimum of $350,000 or 80% of their total floor covering and window treatment purchases (whichever is greater) through the FTG System during the calendar year following the opening of each showroom. Only products designated by Floors To Go as part of the FTG System count toward this minimum.
While franchisees can purchase floor covering merchandise from sources not affiliated with Floors To Go, they must still meet the minimum purchase requirements from the FTG System. Failure to meet these minimum purchase requirements could lead to termination of the franchise agreement. This purchasing requirement ensures that franchisees remain committed to the Floors To Go system and that a significant portion of their inventory aligns with the franchisor's approved vendors and products.