By signing the Floors To Go Membership Agreement, what does the franchisee agree to?
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
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, by signing the Membership Agreement, the franchisee agrees to the terms and conditions outlined within that agreement.
Specifically, the franchisee gains the right to participate as a member in the Floors To Go (FTG) System for purchasing floor and window coverings and to represent their business as part of the FTG System. This includes the right to participate in the FTG CashBack Program and to use Floors To Go's trademarks, service marks, and trade names with approved signs and emblems.
The franchisee is also granted the right to conduct business at a designated location, referred to as "Your Territory" or "Showroom," which is detailed in Schedule "A" of the agreement. This territory's size and boundaries are determined by Floors To Go based on factors like population, traffic, competition, and demographics. It is important to note that while Floors To Go will not authorize other showrooms within the franchisee's territory, franchisees may still face competition from other outlets, distribution channels, or competitive brands controlled by Floors To Go, such as the FTG Shop At Home program. The agreement does not restrict franchisees from selling or installing products outside their designated territory.