What are the requirements for a Floors To Go franchisee to renew or extend their franchise?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
On renewal or transfer of your franchised business, Your Territory may be modified. Depending on the then-current demographics of Your Territory, and on our then-current standards for territories, if Your Territory is larger than our then-current standard territory, we may require you or the transferee to accept a renewal territory or a transfer territory that is smaller than Your Territory. This means that we will not open or license any other person or entity to open a showroom using the "Floors To Go" trade name or trademarks within Your Territory. However, you may face competition from other outlets that we franchise or own, or from other channels of distribution or competitive brands we control, within Your Territory, including, but not limited to, competition from the FTG Shop At Home program.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
The 2025 Floors To Go Franchise Disclosure Document indicates that upon renewal of the franchise, the franchisee's territory may be modified. Specifically, if the franchisee's territory is larger than the then-current standard territory, Floors To Go may require the franchisee to accept a renewal territory that is smaller than their original territory.
This modification would be based on the then-current demographics of the territory and Floors To Go's standards for territories at the time of renewal. The factors that Floors To Go deems relevant for territory determination include population, traffic flow, presence of businesses, location of competitors (including other showrooms), demographics, and other market conditions.
This policy could impact a franchisee whose initial territory was granted when standards were different, potentially leading to a smaller, less lucrative territory upon renewal. It is important to note that Floors To Go will not open or license any other showroom using the "Floors To Go" trade name or trademarks within the franchisee's territory. However, franchisees may face competition from other outlets that Floors To Go franchises or owns, or from other channels of distribution or competitive brands they control, including the FTG Shop At Home program.