What section of the Floors To Go FDD discusses the franchisee's territory?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
By signing this Membership Agreement (the "Agreement") you agree to the terms and conditions contained herein.
1. Our Relationship
- 1.1. Your Membership. You will have the right to (a) participate as a member in the FTG System for the purchase of floor coverings and window covering products, and to indicate to the public that your independent business is operated as part of the FTG System; (b) participate in the FTG CashBack Program (see Section 7.2 for details); and (c) adopt and use our selected trademarks, service marks, and trade names with our signs, emblems, and insignia.
- 1.2. Your Territory. You will be granted the right to conduct your business at the location designated on the attached Schedule "A" ("Your Territory" or "Showroom"). Your Territory will be determined based on the factors that we deem relevant, which might include population, traffic flow, presence of businesses, location of competitors (including other showrooms), demographics, and other market conditions. The Territory may be defined based on geographic boundaries, streets or other criteria, as we determine appropriate. 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. We will not prohibit you from selling products for installation outside of Your Territory nor will we prohibit you from offering other floor covering or window treatment
products for sale along with those products available through the FTG System. In other words, we will not restrict you from marketing or soliciting customers outside Your Territory.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go FDD, Section 1.2 of the Membership Agreement outlines the terms of the franchisee's territory. This section specifies that the franchisee is granted the right to conduct business at the location designated on Schedule "A," which is referred to as "Your Territory" or "Showroom." Floors To Go determines the territory based on factors they deem relevant, such as population, traffic flow, the presence of businesses, the location of competitors (including other showrooms), demographics, and other market conditions. The territory may be defined by geographic boundaries, streets, or other criteria.
Upon renewal or transfer of the franchise, the territory may be modified. If the franchisee's territory is larger than Floors To Go's then-current standard territory, they may require the franchisee or transferee to accept a renewal or transfer territory that is smaller. Floors To Go will not open or license any other person or entity to open a showroom using the "Floors To Go" trade name or trademarks within the franchisee's territory.
However, the franchisee may face competition from other outlets that Floors To Go franchises or owns, or from other channels of distribution or competitive brands they control, within the franchisee's territory. This includes competition from the FTG Shop At Home program. Floors To Go will not prohibit the franchisee from selling products for installation outside of their territory, nor will they prohibit the franchisee from offering other floor covering or window treatment products for sale along with those products available through the FTG System. In other words, Floors To Go will not restrict the franchisee from marketing or soliciting customers outside their territory.