Where are the territorial rights for a Floors To Go franchise officially identified?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
As part of the FTG System, FTG will grant territorial rights to you which are officially identified in Schedule "A" of the Membership Agreement. FTG will not open any companyowned Floors To Go Showrooms or permit other franchised Floors To Go Showrooms to be located within your territory. 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. You agree to conduct your business at the location designated in Schedule "A" of the Membership Agreement and in no other location. Schedule "A" to the Membership Agreement will include the location of your principal place of business (the approved Showroom location) and a description of your territory. If your territory is defined as a radius, it will be measured from your approved Showroom. Otherwise, the boundaries of a territory are typically designated by streets or by the political boundaries of cities as they exist on the date the Membership Agreement is signed.
FTG, under Section 1.2 of the Membership Agreement, specifically agrees that it will not open or license any other person or entity to open a Showroom using FTG's trade name or service marks within your territory designated in Schedule "A" to the Membership Agreement.
Source: Item 12 — TERRITORY (FDD pages 27–30)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the territorial rights granted to a franchisee are officially identified in Schedule "A" of the Membership Agreement. Floors To Go emphasizes that franchisees do not receive an exclusive territory. This means a franchisee may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Floors To Go.
Schedule "A" to the Membership Agreement includes the location of the franchisee's principal place of business, which is the approved showroom location, and a description of the territory. If the territory is defined by a radius, the measurement will originate from the approved showroom. Otherwise, the boundaries are typically designated by streets or the political boundaries of cities as they exist when the Membership Agreement is signed.
Floors To Go agrees not to open or license any other person or entity to open a showroom using its trade name or service marks within the territory designated in Schedule "A" of the Membership Agreement. However, Floors To Go retains various rights, including the right to operate or grant others the right to operate Floors To Go showrooms outside the franchisee's territory. They can also use alternative marketing plans, distribution methods, and business formats at any location inside or outside the franchisee's territory.
It's important to note that on renewal or relocation of a franchise, the territory may be modified. If the territory is larger than Floors To Go's then-current standard territory, they may require the franchisee or transferee to accept a smaller renewal or transfer territory, depending on the demographics and the company's standards at that time. Additionally, there may be overlap between the territories of Floors To Go members and Abbey Carpet & Floor franchisees, as Abbey Carpet Co., Inc. is an affiliate of Floors To Go.