What is considered a 'Regional Account' for a Mr. Sandless franchise?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Regional Account" means any entity, customer, contract, or business which on its own behalf or through agents, franchisees or other third parties owns, manages, controls or otherwise has responsibility for five (5) or more businesses and whose presence is not confined within any one particular designated territory. Any dispute as to whether a particular customer is a Regional Account shall be determined by us in our sole discretion and our determination shall be final and binding.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, a 'Regional Account' is defined as any entity, customer, contract, or business that manages or controls five or more businesses, either directly or through agents, franchisees, or other third parties. A key characteristic of a Regional Account is that its business locations are not confined to a single designated territory.
For a prospective Mr. Sandless franchisee, understanding this definition is crucial because it clarifies the types of clients that Mr. Sandless may directly manage or assign to specific franchisees. If a franchisee were to solicit or acquire a customer that meets the definition of a Regional Account, Mr. Sandless retains the right to manage that account directly. This could impact a franchisee's potential revenue and business development strategies, as these larger accounts are not automatically included within their territory.
The FDD also states that any dispute regarding whether a customer qualifies as a Regional Account will be determined solely by Mr. Sandless, and their decision is final and binding. This highlights the importance of clear communication and understanding between the franchisee and franchisor regarding customer classification to avoid potential conflicts or misunderstandings. Franchisees should seek clarification from Mr. Sandless if they are uncertain about the status of a particular client or business relationship.
This type of clause is not uncommon in franchise agreements, particularly for service-based businesses like Mr. Sandless, where larger, multi-location clients can represent significant revenue opportunities. Franchisors often reserve the right to manage these accounts directly to ensure consistent service delivery and maintain brand standards across multiple locations, potentially spanning different franchisee territories.