Under what conditions will the Floors To Go agreement continue on a month-to-month basis?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
If you do not provide us with such notice and a renewal fee as set forth in Section 6.6, this Agreement will continue on a month-to-month basis until we either (i) send you notice of termination, or (ii) we agree to renew the Agreement pursuant to the terms provided herein, whichever occurs first.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the franchise agreement will continue on a month-to-month basis if the franchisee does not provide written notice of their intent to renew at least 60 days before the expiration of their membership, and does not pay the renewal fee outlined in Section 6.6 of the agreement. This continuation will last until Floors To Go either sends a notice of termination or agrees to renew the agreement.
For a prospective Floors To Go franchisee, this means that failing to meet the renewal conditions will not automatically terminate the agreement. Instead, it transitions to a month-to-month arrangement, providing a grace period. This could be beneficial if the franchisee is undecided about renewing but wants to continue operating temporarily.
However, it's crucial to be aware that during this month-to-month period, Floors To Go retains the right to terminate the agreement with notice. This creates uncertainty, as the franchisee's continued operation is subject to the franchisor's discretion. Additionally, the agreement can be renewed if both parties agree to the terms outlined in the original agreement. Therefore, franchisees should carefully track the renewal deadlines and conditions to avoid unintentionally entering a month-to-month arrangement and to maintain control over their franchise term.