What rights does Floors To Go retain that are not expressly granted to the member?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
- c. As a member, you agree that we and our affiliates retain all rights not expressly granted to you under this Agreement (with res
Exhibit B-3
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- to be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction) by a business providing products and services similar to those provided at FTG Showrooms, or by another business; and
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- to engage in any other activities we and/or our affiliates desire within or outside of Your Territory that are not specifically prohibited under this Agreement.
Floors To Go, LLC will not operate, or grant others the right to operate, a business substantially identical to yours within Your Territory under any other trade name. Otherwise, we are not required to pay you if we exercise any of the rights specified above inside Your Territory.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go FDD, Floors To Go and its affiliates retain all rights not expressly granted to the member under the Membership Agreement. This means that while the agreement outlines specific rights granted to the franchisee, any rights not explicitly mentioned as belonging to the franchisee remain with Floors To Go.
Floors To Go also retains the right to allow members to be acquired by a business providing similar products and services or by another business. Floors To Go can also engage in any other activities they and/or their affiliates desire within or outside of the member's territory that are not specifically prohibited under the agreement. However, Floors To Go will not operate, or grant others the right to operate, a business substantially identical to the franchisee's within their territory under any other trade name.
This reservation of rights is a common practice in franchising, allowing the franchisor to adapt to changing market conditions and protect the overall brand. However, it also means that a Floors To Go franchisee's rights are limited to those specifically outlined in the agreement, and Floors To Go has broad discretion to act in ways that may impact the franchisee's business, provided those actions are not explicitly prohibited by the agreement. A prospective franchisee should carefully review the Membership Agreement to understand the full scope of rights granted and the limitations placed upon them.