Can Floors To Go unreasonably withhold consent for a showroom relocation?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12. Relocation Of Your Showroom For your convenience, you will have the right, during the term of this Agreement, to relocate your Showroom provided that: (i) you give us ninety (90) days prior written notice of such proposed relocation; (ii) the new location for the Showroom is within Your Territory; and (iii) the new location of the Showroom otherwise complies with the terms of this Agreement and you agree to a revision of Your Territory as determined by us in our sole discretion. We must consent in writing to the change of location, which consent will not be unreasonably withheld. Upon your request, we may waive your Service Fee and Advertising Fee while you are in the process of relocating. Such payment waiver shall in no event extend beyond ninety (90) days.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, franchisees have the right to relocate their showroom during the term of the agreement, subject to certain conditions. Floors To Go requires a ninety-day prior written notice before the relocation. The new location must be within the franchisee's territory and comply with all other terms of the franchise agreement. Additionally, Floors To Go has the right to revise the territory based on the new location, at their sole discretion.
Importantly, Floors To Go's consent to the relocation is required, but the agreement specifies that this consent will not be unreasonably withheld. This provision protects the franchisee from arbitrary denials of relocation requests, providing a degree of security in their investment and operational flexibility.
Furthermore, Floors To Go may offer to waive the Service Fee and Advertising Fee during the relocation process, which can provide financial relief to the franchisee. However, this waiver is limited to a maximum of ninety days. This can help offset some of the costs associated with moving the showroom. Prospective franchisees should carefully consider these factors and assess potential relocation scenarios during their due diligence.