What is the reference for the Securities Exchange Act of 1934 related to Floors To Go?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
opportunity, securities, antitrust, trade regulation or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, Exhibit D-2 addresses legal compliance and disclosure requirements. It states that the franchise seller must disclose if they are subject to any effective order from a national securities association or exchange as defined in the Securities Exchange Act of 1934. This disclosure is required if the person has been suspended or expelled from membership in such an association or exchange.
This requirement ensures transparency regarding the franchise seller's background and any potential regulatory issues. It helps prospective Floors To Go franchisees assess the integrity and reliability of the individuals selling the franchise. The disclosure aims to protect franchisees by providing information about past or current legal or regulatory actions that could affect the franchise relationship.
Prospective franchisees should carefully review Exhibit D-2 and ask Floors To Go about any instances where the franchise seller is subject to orders related to the Securities Exchange Act of 1934. Understanding this information is crucial for making an informed decision about investing in a Floors To Go franchise.