Is a former Mr. Sandless franchisee's immediate family also subject to the non-compete agreement?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, neither you, your principals, nor any member of the immediate family of you or your principals may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation:
18.1.1 Own, maintain, engage in, be employed by, lend money to, extend credit to or have any interest in any other business offering wood floor refinishing, including sanding, dustless refinishing, screening and recoats, sandless refinishing, wood polishing, wood floor care, wood floor cleaning, floor maintenance, floor care, floor refinishing, and floor cleaning for tile, VCT, terrazzo, marmoleum, linoleum, vinyl, asphalt, rubber, laminates, concrete, slate, brick, stone, granite, grout sealing and coloring, ceramic floors, and cabinet refinishing, and exterior wood refinishing or any other services and/or products similar to those offered under the System (a "Competitive Business"); provided, however, that this Section does not apply to your operation of any other Mr. Sandless Business pursuant to a valid franchise agreement with us or your ownership of less than five percent (5%) of any publicly held company;
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the non-compete agreement extends to the franchisee, their principals, and the immediate family members of both during the term of the agreement. Specifically, during the term of the Franchise Agreement, these parties are prohibited from engaging in or having an interest in any business that competes with Mr. Sandless. This includes owning, maintaining, being employed by, lending money to, or extending credit to a competitive business.
This restriction applies to businesses offering wood floor refinishing, including sanding, dustless refinishing, screening and recoats, sandless refinishing, wood polishing, wood floor care, floor cleaning, and other similar services and products. However, there are exceptions: this restriction does not prevent a franchisee from operating another Mr. Sandless franchise under a valid agreement or owning less than 5% of a publicly held company.
This clause ensures that neither the franchisee nor their close family members can leverage the knowledge and resources gained from the Mr. Sandless franchise to directly compete with the system during the agreement's term. Franchisees should carefully consider these limitations, as they could impact the business activities of their immediate family. It is important to note that the FDD excerpt does not specify whether these restrictions continue after the termination of the franchise agreement; it only addresses the restrictions during the term of the agreement.