Does Floors To Go have the right to approve or disapprove a transfer by a franchisee?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Membership Agreement | Summary | |
|---|---|---|---|
| Fee or any applicable Early Termination Fee. | |||
| j. | Assignment of contract by franchisor | Section 10 | Notice |
| k. | "Transfer" by franchisee—defined | Sections 11.1, 11.2, 11.3 and 11.4 | Includes transfer of interest in Membership Agreement and in member if a business entity, upon death/disability, and change in business form |
| l. | Franchisor approval of transfer by franchisee | Section 11.1 | We have right to approve/disapprove transfer. |
| m. | Conditions for f ranchisor approval of transfer | Section 11.1 | Includes payment of monies owed and fee; no breach; release of liability; transferee suitability; and execution of new agreement |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 33–36)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, Floors To Go retains the right to approve or disapprove a transfer of the franchise by a franchisee. This is a common practice in franchising, as it allows the franchisor to maintain control over who enters the system and ensures that new franchisees meet their standards.
The FDD outlines specific conditions that Floors To Go will consider when evaluating a transfer. These conditions include ensuring that all monies owed to Floors To Go are paid, that there is no existing breach of the agreement by the franchisee, and that the franchisee provides a release of liability. Additionally, the potential transferee must be deemed suitable by Floors To Go, and they must execute a new franchise agreement.
These stipulations are important for prospective Floors To Go franchisees to understand. While franchisees have the right to sell their business, Floors To Go has the final say in who takes over. This protects the brand and the interests of other franchisees within the Floors To Go system. Franchisees looking to transfer their business should ensure they meet all the conditions outlined in the Membership Agreement to facilitate a smooth transfer process.