How is the Designated Territory for a Mr. Sandless franchise described?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ce | 116 | | Product Sales | 117 | | Section VII Supplemental Guides | 110 |
ITEM 12 TERRITORY
Franchise Agreement
The Franchise Agreement grants you the right to operate your Business only within the designated territory containing a population of approximately 200,000 and identified in Attachment 2 to the Franchise Agreement (the "Designated Territory"). The Designated Territory will be described by contiguous zip codes or depicted on a map. We obtain the population count through the United States Census bureau. If you meet our qualifications, you may purchase up to 3 additional territories under the Franchise Agreement. Each additional territory will have an estimated population of 100,000. If you purchase multiple territories, you will have multiple Designated Territories. The maximum population under an one Franchise Agreement is approximately 500,000. You may not solicit or perform work outside of your Designated Territory(ies) unless you have received our prior written permission, and only if the customer is located in an area that is not serviced by another System franchisee. You may not relocate your Business without our prior written consent, and we have the right to require that your relocated site be within your Designated Territory(ies). You may not establish additional offices within your Designated Territory(ies) without our express written consent, which will not be unreasonably withheld.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
To keep your rights to your Designated Territory(ies), you must comply with the terms of the Franchise Agreement and satisfy the performance criteria described in Section 2.1.2 of the Franchise Agreement. For a Mr. Sandless Business, beginning six months after the Grand Opening of your Business, you must consistently perform eight floor jobs per month. Your rights to the Designated Territory(ies), and your Franchise Agreement, may be terminated if you do not achieve the performance criteria or if you otherwise breach the terms of the Franchise Agreement.
If you are in compliance with your Franchise Agreement, we will not establish and operate or license anyone else to establish or operate another Business under the Mr. Sandless trademarks within your Designated Territory(ies). We retain the right to establish, or to grant to others the right to establish, Businesses under the the Mr. Sandless trademarks outside of your Designated Territory(ies) and on any terms that we deem advisable. We will not offer you a right of first refusal to purchase from us other business opportunities we offer under other brands and trademarks, and we have the right to sell business opportunities under other brands and trademarks, to others in your Designated Territory(ies).
Source: Item 12 — TERRITORY (FDD pages 25–26)
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 containing a population of approximately 200,000, identified in Attachment 2 of the Franchise Agreement. This territory is described by contiguous zip codes or depicted on a map, with the population count obtained through the United States Census Bureau. A franchisee may purchase up to three additional territories, each with an estimated population of 100,000, potentially reaching a maximum population of approximately 500,000 under one Franchise Agreement.
Mr. Sandless franchisees are restricted from soliciting or performing work outside their Designated Territory(ies) without prior written permission from Mr. Sandless, and only if the customer is not serviced by another franchisee. Relocating the business or establishing additional offices within the Designated Territory(ies) also requires the franchisor's prior written consent. However, Mr. Sandless does not grant exclusive territories, meaning franchisees may face competition from other franchisees, company-owned outlets, alternative distribution channels, or competitive brands controlled by Mr. Sandless.
To maintain the rights to the Designated Territory(ies), a Mr. Sandless franchisee must comply with the terms of the Franchise Agreement and meet specific performance criteria. Beginning six months after the Grand Opening, franchisees must consistently perform eight floor jobs per month. Failure to meet these performance criteria or any breach of the Franchise Agreement may result in the termination of the rights to the Designated Territory(ies) and the Franchise Agreement itself. Mr. Sandless retains the exclusive right to negotiate and enter into agreements with Regional Accounts, defined as businesses with locations in more than 5 locations not confined to one franchisee's territory. Mr. Sandless may offer franchisees the opportunity to service these accounts, but retains the right to provide services directly or through others, even within a franchisee's Designated Territory, without compensation to the franchisee.