Does the Mr. Sandless agreement prohibit actions that are prejudicial to the goodwill associated with the Proprietary Marks?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, neither you, your principals, nor any member of the immediate family of you or your principals may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation:
18.1.2 Divert or attempt to divert any business or customer of the Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Proprietary Marks or the System.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the franchise agreement explicitly prohibits franchisees from engaging in any actions that could harm the goodwill associated with Mr. Sandless's Proprietary Marks or the System. Specifically, during the term of the agreement, franchisees (including their principals and immediate family members) are barred from performing any act that is injurious or prejudicial to the goodwill associated with the Proprietary Marks or the System. This restriction is in place to protect the brand's reputation and maintain customer trust.
This provision means that franchisees must be careful in their business dealings and marketing efforts to avoid any actions that could reflect negatively on the Mr. Sandless brand. This includes not only direct actions, but also indirect actions that could potentially harm the brand's image. For example, franchisees must ensure that their customer service is of high quality and that they adhere to Mr. Sandless's standards of operation.
Such clauses are standard in franchise agreements to protect the franchisor's brand and reputation, which are critical assets. Franchisees benefit from a strong brand, and this clause ensures that all franchisees contribute to maintaining that strength. Mr. Sandless franchisees should understand that any behavior that could damage the brand's reputation could be a breach of contract.