Is the 'Designated Territory' for a Mr. Sandless franchise authorized and approved?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ly agree as follows:
1. FRANCHISE GRANT
We hereby grant to you, and you hereby accept, a nonexclusive franchise to establish and operate one (1) Franchised Business pursuant to the terms of this Agreement. This Agreement does not give you the right to establish additional Franchised Businesses.
2. TERRITORY AND LOCATION
2.1 Designated Territory
You shall operate your Business only within the designated territory identified, or (if the parties have not agreed upon a territory at the time this Agreement is signed) to be identified, in the Data Sheet (the "Designated Territory"). The size and configuration of your Designated Territory is defined in terms of contiguous zip codes and/or by a map attached to this Agreement as Attachment 2. This Agreement grants you the right to operate the Franchised Business within the Territory only. You acknowledges that (i) the Designated Territory was mutually agreed upon by you and us, (ii) prior to the Effective Date hereof, you conducted your own due diligence with regard to potential customers and other matters relative to the operation of the Franchised Business in the Designated Territory, and (iii) our agreement to the Designated Territory is permission only, does not constitute a representation, promise, warranty, or guarantee, express or implied, by us that the Franchised Business operated therein will be profitable or otherwise successful, and cannot, and does not, create any liability for us. You may not offer or sell any products or services offered by the Business to customers located outside 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, the franchise agreement grants the franchisee the right to operate their business within a 'Designated Territory.' This territory is identified in the Data Sheet of the franchise agreement and defined by contiguous zip codes or a map attached to the agreement. The agreement explicitly states that the designated territory is mutually agreed upon by both Mr. Sandless and the franchisee, and that the franchisee has conducted their own due diligence regarding the territory's potential.
The FDD clarifies that Mr. Sandless's agreement to the designated territory is simply permission to operate there and does not constitute any guarantee of profitability or success. The franchisee is restricted from actively soliciting customers outside of their designated area, although they may serve customers in adjacent, un-franchised areas with prior written approval from Mr. Sandless.
Mr. Sandless agrees not to establish or authorize another Mr. Sandless business within the franchisee's designated territory, as long as the franchisee is in substantial compliance with the franchise agreement. The franchisee can purchase additional territories of approximately 100,000 population each, up to a total of four, for an additional fee of $5,000 per territory, which would then be added to Attachment 2 of the franchise agreement.