Does the Mr. Sandless agreement grant any territorial rights other than the Designated Territory?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
tside of the Designated Territory. However, you may offer or sell products or services to customers located outside of and adjacent to your Designated Territory if the customer is located in an area that is not serviced by another System franchisee, and you have received prior written approval from us, which approval may be granted or denied at our sole discretion.
During the term of this Agreement, so long as you are in substantial compliance with the terms and conditions of this Agreement, we will not establish or locate, or grant any third party the right to establish or locate, another Mr. Sandless Business using the System and Proprietary Marks within the Designated Territory, except as set forth in Section 2.2 below. This Agreement does not grant you any other territorial rights. Notwithstanding the foregoing, if y
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the franchise agreement primarily grants rights within a Designated Territory. This territory is defined by contiguous zip codes and/or a map attached to the agreement. Mr. Sandless will not establish or grant another franchise within this territory as long as the franchisee is in substantial compliance with the agreement. However, the agreement explicitly states that it does not grant any other territorial rights beyond this Designated Territory.
Despite the limited territorial rights, a Mr. Sandless franchisee has the option to expand their reach by purchasing additional territories. If a franchisee meets the qualifications, they can purchase additional territories of approximately 100,000 population each, up to a maximum of four territories, under the existing agreement. Each additional territory comes at a cost of $5,000.00, and upon purchase, Attachment 2 of the franchise agreement will be amended to reflect the expanded territory.
Mr. Sandless retains significant rights outside the Designated Territory, including the right to establish other Mr. Sandless businesses or grant that right to others. They also reserve the right to distribute products through alternative channels, such as home improvement stores, the internet, and mail order, even within a franchisee's Designated Territory. The franchisee has no rights to these alternative distribution channels and will not share in any proceeds from those sales. This aspect is crucial for potential franchisees to consider, as it highlights the limitations of their territorial exclusivity and the potential for competition from the franchisor's other distribution methods.