What is the condition that Mr. Sandless must meet to prevent them from establishing another Mr. Sandless Business within a franchisee's 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, Mr. Sandless will not establish or grant another party the right to establish a Mr. Sandless business within a franchisee's designated territory as long as the franchisee is in substantial compliance with the terms and conditions of the Franchise Agreement. This protection is subject to exceptions detailed in Section 2.2 of the agreement, which likely outlines specific circumstances where Mr. Sandless might reserve the right to operate or allow others to operate within the territory, such as through alternative channels of distribution.
This clause offers a degree of territorial protection to Mr. Sandless franchisees, ensuring that the franchisor will not directly compete with them within their designated area, provided the franchisee adheres to the agreement. However, the reference to Section 2.2 indicates that this protection is not absolute and that Mr. Sandless retains certain rights to distribute products or services through other channels, potentially impacting the franchisee's business.
It is important for prospective franchisees to carefully review Section 2.2 of the Franchise Agreement to fully understand the scope and limitations of the territorial protection. Franchisees should also seek clarification from Mr. Sandless regarding any potential alternative channels of distribution that could operate within their territory and how these might affect their business.
Additionally, the agreement allows franchisees to purchase additional territories, each approximately 100,000 in population, for an additional fee of $5,000 per territory, up to a maximum of four territories under the agreement. This provides an opportunity for franchisees to expand their protected area, subject to Mr. Sandless's approval and the payment of the additional territory fee.