What state's laws govern the Floors To Go membership agreement?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
16.1. Governing Law. This Agreement shall be interpreted, construed and governed according to the internal laws of the State of Florida, and not the laws pertaining to choice or conflict of laws, thereof, except that:
- a. The laws of the state in which the franchised business is to be located which govern the offer, sale, and registration of franchises, including, without limitation, any so-called "Little FTC Act" of such state, shall apply to the offer, sale, and registration of the Floors To Go membership granted by this Agreement and not such laws of the State of Florida (unless the franchised business is to be located in Florida);
- b. The laws of the jurisdiction in which any action to enforce any covenants not to compete provided or referenced herein shall govern such covenants not to compete, without giving effect to the principles pertaining to choice or conflict of laws thereof.
- c. The U.S. Trademark Act Of 1946 (Lanham Act, 15 U.S.C. §1051 et seq.) shall govern all matters related to your use of the FTG Marks, and the Federal Arbitration Act (9 U.S.C. §1 et seq.) shall govern all matters related to arbitration. To the extent that the Federal Arbitration Act is found inapplicable for any reason, then the provisions of the Florida Arbitration Code (Fla. Stat. Chapter 682) shall govern all matters related to arbitration.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the membership agreement is generally governed by the internal laws of the State of Florida. This means that in most situations, Florida law will be used to interpret and enforce the agreement.
However, there are some exceptions to this rule. The laws of the state where the franchised Floors To Go business is located will govern the offer, sale, and registration of the franchise. This includes any state-specific laws similar to the "Little FTC Act." So, if a franchisee operates in California, California franchise laws will apply to the franchise sale and registration, unless the business is located in Florida.
Additionally, the laws of the jurisdiction where any action to enforce covenants not to compete will govern those specific covenants. The U.S. Trademark Act governs the use of Floors To Go's trademarks, and the Federal Arbitration Act governs matters related to arbitration. If the Federal Arbitration Act is inapplicable, the Florida Arbitration Code will govern arbitration matters.