Does the Mr. Sandless Franchise Grant agreement address regional accounts?
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 the 2025 Mr. Sandless Franchise Disclosure Document, the Franchise Agreement does address regional accounts. The agreement defines a "Regional Account" as any entity or customer that manages or controls five or more businesses, either directly or through agents or franchisees, and whose business locations are not confined to a single designated territory.
The Mr. Sandless franchise agreement stipulates that any disagreement regarding whether a customer qualifies as a Regional Account will be determined solely by Mr. Sandless, and their decision is considered final and binding. This means that Mr. Sandless has the ultimate authority to classify a customer as a Regional Account, which could impact which franchisee is eligible to service that account.
This clause is important for prospective franchisees because it clarifies how multi-location or regional customers are handled within the Mr. Sandless franchise system. It ensures that there is a clear process for determining which franchisee is responsible for servicing these larger accounts, although the final decision rests with Mr. Sandless. Franchisees should be aware of this provision and understand its potential impact on their business, particularly if they are located in areas with a high concentration of businesses that could potentially qualify as Regional Accounts.