Is a former Mr. Sandless franchisee prohibited from contacting Mr. Sandless's suppliers after termination?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
with the Franchise and for a continuous uninterrupted period commencing upon the cessation or termination
of my position with Franchisee, regardless of the cause for termination, and continuing for two (2) years thereafter, either directly or indirectly, for myself, or through, on behalf of, or in conjunction with any person, persons, partnership, or corporation, own, maintain, operate, engage in, act as a consultant for, perform services for, or have any interest in any business offering wood floor refinishing, wood free care, wood floor cleaning, and floor maintenance, outdoor wood refinishing, wood care, wood cleaning, wood maintenance, concrete cleaning and sealing, and other forms of outdoor refinishing, cleaning and maintenance, or any selling any product or products which are the same as, or substantially similar to, any of the products or services offered by a Mr. Sandless Business, except at a Mr. Sandless Business, which is or is intended to be, located within:
- 7.1 the Franchisee's Designated Territory as defined in the Franchise Agreement;
- 7.2 Fifty (50) miles of Franchisee's Designated Territory; or
- 7.3 Fifty (50) miles of any Business operating under the System and the Proprietary Marks.
The prohibitions in this Paragraph 7 do not apply to my interests in or activities performed in connection with a Franchised Business. This restriction does not apply to my ownership of less than a five percent (5%) beneficial interest in the outstanding securities of any publicly held corporation.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
Based on the 2025 Mr. Sandless Franchise Disclosure Document, a former franchisee is restricted from engaging in certain business activities after the termination of their franchise agreement. Specifically, for a period of two years following the termination, the franchisee is prohibited from owning, operating, or being involved with any business offering similar services or products to Mr. Sandless within their designated territory or within 50 miles of it, or within 50 miles of any other Mr. Sandless business. This includes wood floor refinishing, cleaning, and maintenance, as well as concrete cleaning and sealing.
This restriction is outlined in Paragraph 7 of the franchise agreement and applies regardless of the reason for termination. However, the restrictions do not apply to ownership of less than 5% of the securities of a publicly held corporation.
This non-compete clause is designed to protect Mr. Sandless's market and business interests by preventing former franchisees from directly competing using the knowledge and experience gained while operating under the Mr. Sandless brand. Prospective franchisees should carefully consider the implications of this clause, particularly if they plan to remain in the same industry after leaving the Mr. Sandless system. It is important to note that the FDD does not explicitly mention a prohibition on contacting Mr. Sandless's suppliers, but the broad restrictions on operating a similar business could potentially limit interactions with suppliers in certain contexts.