Does Mr. Sandless have the exclusive right to negotiate agreements with Regional Accounts?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3.1 We shall have the exclusive right, unless otherwise specifically delegated in writing, on behalf of us, you, and/or other franchisees utilizing the Proprietary Marks, to negotiate and enter into agreements or approve forms of agreement to provide services to Regional Accounts, licensees or franchisees, including locations within the Designated Territory. You must refer all potential Regional Accounts to us. You are not permitted to negotiate terms with any Regional Account.
- 2.3.2 Following the execution of a contract with or the acceptance of a bid by a Regional Account which contemplates the provision of services to one or more Regional Account locations within the Designated Territory, you have the option to perform such services pursuant to the terms and conditions of the Regional Account contract or on such terms and conditions as we in our discretion determine.
- 2.3.3 If the Regional Account determines not to use your services, if you elect not to provide services to a Regional Account in conformity with the terms and conditions of the Regional Account bid or contract, or if the Regional Account is not satisfied with your work, we shall have the right, exercisable in our sole discretion, to:
- (i) provide, directly or through any other licensee or franchisee utilizing the Proprietary Marks, services to the Regional Account location(s) within the Designated Territory on the terms and conditions contained in the Regional Account bid or contract; and/or
- (ii) contract with another party to provide such services to the Regional Account location(s) within the Designated Territory on the terms and conditions contained in the Regional Account bid or contract between us and the Regional Account, utilizing the Proprietary Marks or any other trademarks, service marks or trade names.
- 2.3.4 Neither the direct provision by us (or a franchisee, licensee, or agent of ours) of services to Regional Accounts as authorized in Section 2.3.3(i) above, nor our contracting with another party to provide such services as authorized in 2.3.3(ii) above, shall constitute a violation of Section 2.1 of this Agreement relating to the Designated Territory, even if such services are delivered from a location within the Designated Territory. You surrender any compensation or consideration for work performed by others in the Designated Territory pursuant to this section.
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 exclusive right to negotiate and enter into agreements with Regional Accounts, unless this right is specifically delegated to the franchisee in writing. A "Regional Account" is defined as any entity with responsibility for five or more businesses whose presence extends beyond a single designated territory. Any dispute over whether a customer qualifies as a Regional Account will be determined by Mr. Sandless, and their decision is final.
A Mr. Sandless franchisee is required to refer all potential Regional Accounts to Mr. Sandless. The franchisee is explicitly prohibited from negotiating terms with any Regional Account.
However, after Mr. Sandless executes a contract with a Regional Account for services within the franchisee's Designated Territory, the franchisee has the option to perform those services under the terms of the Regional Account contract, or under terms determined at Mr. Sandless's discretion. If the franchisee declines to provide services, or if the Regional Account is unsatisfied with the franchisee's work, Mr. Sandless has the right to provide the services directly, or through another franchisee or licensee, or to contract with another party to provide the services.
The FDD states that Mr. Sandless providing services to Regional Accounts, either directly or through another party, does not constitute a violation of the franchisee's Designated Territory rights, even if the services are delivered from within that territory. The franchisee will not receive any compensation for work performed by others in their territory under these circumstances.