How is the Designated Territory for a Mr. Sandless franchise described in the Franchise Agreement?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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. This territory contains a population of approximately 200,000 people, and it is identified in Attachment 2 of the Franchise Agreement. The territory will be described using contiguous zip codes or depicted on a map. The population count is based on data from the United States Census Bureau. A franchisee who meets Mr. Sandless's qualifications can purchase up to 3 additional territories under the Franchise Agreement, each with an estimated population of 100,000. The maximum population under one Franchise Agreement is approximately 500,000.
Mr. Sandless franchisees are restricted from soliciting or performing work outside their Designated Territory unless they have prior written permission from Mr. Sandless and the customer is located in an area not serviced by another franchisee. Franchisees cannot relocate their business without prior written consent from Mr. Sandless, and Mr. Sandless has the right to require that the relocated site be within the franchisee's Designated Territory. Furthermore, franchisees cannot establish additional offices within their Designated Territory without express written consent from Mr. Sandless, which will not be unreasonably withheld.
It is important to note that Mr. Sandless franchisees do not receive an exclusive territory. They may face competition from other franchisees, outlets that Mr. Sandless owns, or other channels of distribution or competitive brands that Mr. Sandless controls. To maintain the rights to the Designated Territory, franchisees must comply with the terms of the Franchise Agreement and meet specific performance criteria. For a Mr. Sandless business, beginning six months after the Grand Opening, franchisees must consistently perform eight floor jobs per month. Failure to achieve these performance criteria or any other breach of the Franchise Agreement may result in termination of the rights to the Designated Territory and the Franchise Agreement itself.