What condition must be met for the non-compete clause to apply to a former Mr. Sandless franchisee?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
with the Franchise and for a continuous uninterrupted period commencing upon the cessation or termination
of my position with Franchisee, regardless of the cause for termination, and continuing for two (2) years thereafter, either directly or indirectly, for myself, or through, on behalf of, or in conjunction with any person, persons, partnership, or corporation, own, maintain, operate, engage in, act as a consultant for, perform services for, or have any interest in any business offering wood floor refinishing, wood free care, wood floor cleaning, and floor maintenance, outdoor wood refinishing, wood care, wood cleaning, wood maintenance, concrete cleaning and sealing, and other forms of outdoor refinishing, cleaning and maintenance, or any selling any product or products which are the same as, or substantially similar to, any of the products or services offered by a Mr. Sandless Business, except at a Mr. Sandless Business, which is or is intended to be, located within:
- 7.1 the Franchisee's Designated Territory as defined in the Franchise Agreement;
- 7.2 Fifty (50) miles of Franchisee's Designated Territory; or
- 7.3 Fifty (50) miles of any Business operating under the System and the Proprietary Marks.
The prohibitions in this Paragraph 7 do not apply to my interests in or activities performed in connection with a Franchised Business. This restriction does not apply to my ownership of less than a five percent (5%) beneficial interest in the outstanding securities of any publicly held corporation.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the non-compete clause is triggered when a franchisee's association with the Mr. Sandless franchise ends, regardless of the reason for termination. This means that whether the franchise agreement is terminated by the franchisee, by Mr. Sandless, or simply expires, the non-compete restrictions come into effect.
The non-compete clause prevents the former franchisee from engaging in specific business activities. Specifically, it prohibits them from owning, operating, consulting for, or having any interest in businesses that offer wood floor refinishing, wood-free care, wood floor cleaning, floor maintenance, outdoor wood refinishing, wood care, wood cleaning, wood maintenance, concrete cleaning and sealing, and other forms of outdoor refinishing, cleaning and maintenance. It also restricts them from selling products that are the same as or substantially similar to those offered by Mr. Sandless.
This restriction applies for a period of two years following the termination of the franchise. The geographic scope of the non-compete includes the franchisee's designated territory, as defined in the Franchise Agreement, as well as an area extending 50 miles beyond that territory. It also extends to 50 miles of any other Mr. Sandless business operating under the Mr. Sandless system and using its proprietary marks. An exception exists for interests or activities connected with another Mr. Sandless Franchised Business. Furthermore, the restriction does not apply to ownership of less than 5% of the securities of a publicly held corporation.