Under what conditions can Floors To Go modify the Membership Agreement?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Membership Agreement | Summary | |
|---|---|---|---|
| Fee or any applicable Early Termination Fee. | |||
| j. | Assignment of contract by franchisor | Section 10 | Notice |
| k. | "Transfer" by franchisee—defined | Sections 11.1, 11.2, 11.3 and 11.4 | Includes transfer of interest in Membership Agreement and in member if a business entity, upon death/disability, and change in business form |
| l. | Franchisor approval of transfer by franchisee | Section 11.1 | We have right to approve/disapprove transfer. |
| m. | Conditions for f ranchisor approval of transfer | Section 11.1 | Includes payment of monies owed and fee; no breach; release of liability; transferee suitability; and execution of new agreement |
| n. | Franchisor's right of f irst refusal to acquire franchisee's business | Not applicable | |
| o. | Franchisor's option to p urchase franchisee's business | Not applicable | |
| p. | Death or disability of franchisee | Section 11.2 | Includes payment of money owed, transferee suitability, assumption of current agreement, release from estate |
| q. | Non-competition c ovenants during the term of the franchise | Subsection 9.2(d) and Section 9.4 | No participation in other marketing and merchandising systems, subject to applicable state law |
| r. | Non-competition covenants after the franchise is terminated or expires | Not applicable | |
| s. | Modification of the agreement | Section 3.2; Section 5.3 | Pricing Manual subject to change; improvements, additions and changes to FTG System must be adopted |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 33–36)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, Floors To Go can modify the Membership Agreement under specific conditions outlined in Sections 3.2 and 5.3 of the agreement. These modifications include changes to the Pricing Manual and the adoption of improvements, additions, and changes to the Floors To Go System. This means that as a franchisee, you must adhere to the updated pricing guidelines and incorporate any new elements or modifications that Floors To Go introduces to its business system.
This ability for Floors To Go to unilaterally modify aspects of the agreement is fairly common in franchising. It allows the franchisor to adapt to changing market conditions, technological advancements, and evolving consumer preferences. However, it also means that franchisees must be prepared for potential changes in operational procedures, pricing strategies, and system standards.
Prospective franchisees should carefully review Sections 3.2 and 5.3 of the Membership Agreement to fully understand the scope and potential impact of these modifications. It would be prudent to discuss with existing franchisees how Floors To Go has historically implemented such changes and what impact those changes had on their businesses. Understanding the types of changes that have been made in the past can provide valuable insight into what to expect in the future.