Is Floors To Go responsible for any direct or indirect liability regarding advertising?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon your request, we will provide you with a statement setting forth an accounting of our advertising expenditures. However, FTG is not responsible for, nor will FTG assume any direct or indirect liability or obligation to you with respect to, having independent certified public accountants conduct a separate audit on the receipt and disbursement of the Advertising Fees that FTG receives from its members. All Advertising Fees remaining for any particular year, if any, will be carried forward for use during the next year. FTG assumes no other direct or indirect liability or obligation to you with respect to collecting or maintaining the Advertising Fees or with respect to developing advertising materials, or with respect to directing or administering the advertising and marketing programs. FTG is not required to spend any amounts for advertising in the area where a member's showroom is located.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–27)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, Floors To Go does not assume direct or indirect liability or obligations to franchisees regarding advertising. While Floors To Go develops advertising materials and marketing programs for its members, it is not responsible for how the advertising fees it collects are spent. Floors To Go has sole discretion over the creative concepts, materials, endorsements, market and media selection, and resource allocation used in its advertising programs. Floors To Go is not obligated to conduct a separate audit by independent certified public accountants on the receipt and disbursement of advertising fees. Any advertising fees remaining for a particular year will be carried forward for use during the next year.
Floors To Go members are permitted to develop their own advertising material, but it must be consistent with Floors To Go's standards and approved by Floors To Go. Members must also adhere to Floors To Go's trademark, service mark, logo, and advertising requirements if they develop or purchase internet-based advertising.
Floors To Go provides members with a website on the domain www.floorstogo.com, with customizable pages subject to Floors To Go's review and approval. Floors To Go reserves the right to charge a fee for additional website features and benefits. Floors To Go also reserves the right to require franchisees to use "Floors To Go" in their trade name and signage. If a franchisee develops an independent website, it must comply with Floors To Go's requirements, including obtaining prior written approval of the domain name, home page addresses, hyperlinks, and other links.