factual

What constitutes abandonment of the Mr. Sandless business, leading to potential termination?

Mr_Sandless Franchise · 2025 FDD

Answer from 2025 FDD Document

You must consistently perform not less than eight (8) floor jobs a month within six (6) months of the Grand Opening of your Business. If you own multiple Mr. Sandless Businesses, then notwithstanding this Section 9.2, you must consistently perform, on a monthly basis, not less than eight (8) floor jobs plus an additional two (2) floor jobs for each territory you own and operate. Your failure to comply with this minimum performance criteria will be a material default of this Agreement and we will have the right, among others, to reduce the size of or your rights in the Designated Territory or to terminate this Agreement.

Source: Item 22 — CONTRACTS (FDD page 42)

What This Means (2025 FDD)

Based on the 2025 Mr. Sandless Franchise Disclosure Document, a franchisee's failure to meet specific performance criteria can be considered a material default, potentially leading to the reduction of territory size or termination of the agreement. Specifically, a Mr. Sandless franchisee must consistently perform not less than eight floor jobs a month within six months of the Grand Opening of their Business.

For franchisees owning multiple Mr. Sandless businesses, the performance criteria increase. They must consistently perform not less than eight floor jobs plus an additional two floor jobs for each territory they own and operate on a monthly basis.

Failure to meet these minimum performance criteria constitutes a material breach of the franchise agreement, giving Mr. Sandless the right to reduce the size of the franchisee's designated territory or terminate the agreement altogether. This clause emphasizes the importance of consistent business activity and achieving a minimum level of service delivery to maintain the franchise rights and territorial integrity.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.