Can a Floors To Go territory be modified upon renewal or relocation?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
On renewal or relocation of a franchise, the territory may be modified. Depending on the then-current demographics of the territory, and on our then-current standards for territories, if the 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 smaller than your then-current territory.
Under the Membership Agreement, you will have the right to move your Showroom to another location, provided that (i) you give us ninety (90) days' prior written notice of the proposed relocation, (ii) the new location is within your existing territory, (iii) the new location otherwise complies with the terms of the Membership Agreement, and (iv) you agree to a revision of your existing territory, as determined by us in our sole discretion. The relocation must be approved in writing by FTG. You will be required to continue paying the monthly Service Fee and Advertising Fee during the time between termination of operations at the original Showroom location and commencement of operations at the new Showroom location.
Source: Item 12 — TERRITORY (FDD pages 27–30)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the territory granted to a franchisee can be modified upon renewal or relocation. Specifically, the FDD states that if the territory is larger than the then-current standard territory based on demographics and the franchisor's standards at the time of renewal, Floors To Go may require the franchisee to accept a smaller territory.
Regarding relocation, a Floors To Go franchisee has the right to move their showroom to another location, provided they meet certain conditions. These conditions include giving Floors To Go ninety (90) days' prior written notice, ensuring the new location is within the existing territory, complying with the terms of the Membership Agreement, and agreeing to a revision of their existing territory as determined by Floors To Go. The relocation must receive written approval from Floors To Go, and the franchisee is obligated to continue paying the monthly Service Fee and Advertising Fee during the period between the termination of operations at the original location and the commencement of operations at the new location.
This policy has important implications for prospective franchisees. While it offers some flexibility in terms of relocation, it also introduces the risk of a reduced territory size upon renewal or relocation, depending on Floors To Go's then-current standards. This could impact the franchisee's potential customer base and revenue. It is important for franchisees to understand the criteria Floors To Go uses to determine territory size and to consider how changes in demographics or market conditions could affect their territory in the future.