Who determines if a customer qualifies as a Regional Account for Mr. Sandless, and is that determination final?
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, Mr. Sandless retains the sole discretion to determine whether a particular customer qualifies as a Regional Account. A Regional Account is defined as any entity, customer, contract, or business that owns, manages, controls, or has responsibility for five or more businesses, either directly or through agents, franchisees, or other third parties, and whose presence extends beyond a single designated territory.
This determination made by Mr. Sandless is considered final and binding. This means that franchisees must accept Mr. Sandless's decision regarding whether a customer meets the criteria for a Regional Account without recourse.
This provision is important for prospective franchisees to understand because Regional Accounts could represent significant business opportunities. However, the revenue from these accounts may not be fully realized by individual franchisees if Mr. Sandless designates them as Regional Accounts and manages them centrally. Franchisees should seek clarification from Mr. Sandless regarding the process and criteria used to identify and manage Regional Accounts to fully understand the potential impact on their business.