Does the Mr. Sandless franchise agreement grant franchisees exclusive rights to all distribution methods within their Designated Territory?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
We retain the right to establish, or to grant others the right to establish, Mr. Sandless Businesses outside the Designated Territory. You acknowledge and agree that certain of our or our affiliates' products, whether now existing or developed in the future and whether or not designated as "proprietary products", may be distributed in the Designated Territory by us, our affiliates, our franchisees, licensees or designees, in such manner and through such channels of distribution as we, in our sole discretion, shall determine. Such alternative channels of distribution shall include, but are not limited to, sales of any products offered hereunder or other products using the Proprietary Marks or using other marks or private labeling at or through home improvement stores, home shows, the internet (including orders via our Website), mail order or other distributions methods or supply chains. We reserve the right, among others, as to any distribution arrangements relating thereto. You understand that this Agreement grants you no rights: (i) to distribute such products via alternative channels of distribution as described in this section; or (ii) to share in any of the proceeds received by any party from such sales via alternative channels of distribution. We will not sell the Mr. Sandless services in a "do it yourself" kit by any means which bypasses the franchise System.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the franchise agreement does not grant franchisees exclusive rights to all distribution methods within their designated territory. Mr. Sandless retains the right to distribute products through alternative channels such as home improvement stores, home shows, the internet (including orders via their website), mail order, or other distribution methods, even within a franchisee's designated territory.
This means that while Mr. Sandless will not establish another physical Mr. Sandless Business within a franchisee's territory, they can still sell products and services through other avenues, potentially competing with the franchisee. The franchisee has no rights to distribute products via these alternative channels or share in any proceeds from those sales. Mr. Sandless does, however, commit to not selling their services in a "do it yourself" kit that would bypass the franchise system.
This reservation of rights for alternative distribution channels is a significant consideration for potential franchisees. It highlights the importance of understanding the competitive landscape and potential impact of Mr. Sandless's other sales channels on a franchisee's business. A prospective franchisee should inquire about Mr. Sandless's plans for utilizing these alternative channels and how they might affect the franchisee's revenue potential within their designated territory.