What section of the Floors To Go agreement outlines the franchisee's rights?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS DISCLOSURE DOCUMENT IS PROVIDED FOR YOUR OWN PROTECTION AND CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT. THIS DISCLOSURE DOCUMENT AND ALL CONTRACTS OR AGREEMENTS SHOULD BE READ CAREFULLY IN THEIR ENTIRETY FOR AN UNDERSTANDING OF ALL RIGHTS AND OBLIGATIONS OF BOTH THE FRANCHISOR AND THE FRANCHISEE.
IF THIS DISCLOSURE DOCUMENT IS NOT DELIVERED ON TIME, OR IF IT CONTAINS A FALSE, INCOMPLETE, INACCURATE OR MISLEADING STATEMENT, A VIOLATION OF FEDERAL AND STATE LAW MAY HAVE OCCURRED AND SHOULD BE REPORTED TO THE FEDERAL TRADE COMMISSION, WASHINGTON D.C. 20580 AND THE DEPARTMENT OF FINANCIAL INSTITUTIONS, SECURITIES DIVISION, 150 ISRAEL ROAD SW, TUMWATER, WASHINGTON 98501.
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for Floors To Go, LLC for use in the Commonwealth of Virginia shall be amended as follows:
Additional disclosure. The following statements are added to Item 17.h.
Nothing in this Agreement can abrogate or reduce any of Franchisee's rights as provided for by the North Dakota Franchise Investment Law (N.D. Cent. Code, §§ 51- 19-01 through 51-19-17), or Franchisee's rights to any procedure, forum, or remedies provided for by the laws of North Dakota.
This section shall not in any way abrogate or reduce any rights of franchisees as provided for under the Rhode Island Franchise Investment Act (Rhode Island General Laws § 19-28.1-14). A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this act.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
The 2025 Floors To Go Franchise Disclosure Document (FDD) includes several exhibits that summarize franchisee rights, particularly concerning state-specific regulations. For instance, Exhibits D-13, D-14, D-15, D-16, and D-1, which pertain to South Dakota, Virginia, Washington, Wisconsin, and California respectively, each state that the disclosure document summarizes certain material provisions of the franchise agreement, and that the franchise agreement and all contracts or agreements should be read carefully in their entirety for an understanding of all rights and obligations of both Floors To Go and the franchisee. These exhibits also highlight the franchisee's rights under state laws and outline where to report violations of these laws.
Additionally, specific sections of the Floors To Go agreement are amended to protect franchisee rights in certain states. For example, in North Dakota, the Commissioner has held that requiring franchisees to consent to the jurisdiction of courts outside of North Dakota is unfair. The North Dakota amendment clarifies that nothing in the agreement can reduce any of the franchisee's rights as provided by the North Dakota Franchise Investment Law. Similarly, the Rhode Island amendment states that a provision in a franchise agreement restricting jurisdiction or venue to a forum outside the state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
In Virginia, the FDD is amended to include additional disclosures in Item 17.h, in recognition of restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act. This ensures that franchisees are aware of their rights against undue influence or termination without reasonable cause. These state-specific addenda and amendments collectively address and protect the franchisee's rights under various state franchise laws, ensuring compliance and providing avenues for recourse in case of violations.