For a Mr. Sandless franchise, what happens if a franchisee has repeated violations of the Franchise Agreement?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY | |
|---|---|---|---|
| FRANCHISE AGREEMENT | |||
| a. Length of the | 3.1 | 10 years | |
| franchise term | |||
| b. Renewal or extension of the term | 3.2 | If you have complied with the Franchise Agreement and certain conditions, you may enter into a successor franchise agreement for the franchise for 2 consecutive additional 5-year terms. | |
| c. Requirements for | 3.2 | You must be in compliance with the Franchise | |
| franchisee to renew or | Agreement; must have satisfied all monetary | ||
| extend | obligations owed to us and our affiliates; must be in | ||
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY | |
| t. Integration/merger clause | 25.1 | Only the terms of the Franchise Agreement are binding (subject to applicable federal and/or state law). Any representations or promises outside of the Franchise Disclosure Document and other agreements may not be enforceable. Nothing in the agreement or in any related agreement is intended to disclaim the representations made in the Franchise Disclosure Document. | |
| u. Dispute resolution by arbitration or mediation | 24.2, 24.3 | You must bring any dispute or claim to our President first for discussion before you may bring the dispute to a third party. At our option, all claims or disputes relating to the Franchise Agreement must be submitted first to mediation in Delaware County, Pennsylvania under the National Franchise Mediation Program (“NFMP”) in accordance with the NFMP’s mediation rules then in effect.(subject to state law) | |
| v. Choice of forum | 24.6 | Subject to state law, for any dispute not subject to or not resolved by mediation, the parties agree to litigate only in a court of general jurisdiction in Delaware County, Pennsylvania, or the United States District Court for the Eastern District of Pennsylvania. | |
| w. Choice of law | 24.1 | Agreement is governed by the laws of Pennsylvania. (subject to state law) | |
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY information or copyrights; failure to conduct grand opening advertising when required; abandonment of your Business; loss of lease; our requirements for transfer upon death or disability are not complied with; violation of non-competition covenant; failure to meet minimum performance criteria (if you own a Mr. Sandless Business); repeated violations of the Franchise Agreement (whether or not cured) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, repeated violations of the Franchise Agreement, whether or not they are cured, can lead to termination of the franchise agreement. This is explicitly stated as one of the grounds for termination.
This means that even if a franchisee corrects a violation each time it occurs, the franchisor, Mr. Sandless, still has the right to terminate the agreement if these violations happen repeatedly. This clause gives Mr. Sandless significant power over franchisees, as even minor infractions, if repeated, could jeopardize the franchise.
Prospective franchisees should be aware of this clause and carefully review the Franchise Agreement to understand what constitutes a violation. They should also maintain meticulous records to demonstrate their compliance efforts. It would be prudent to seek legal counsel to fully understand the implications of this clause and negotiate for clearer definitions of what constitutes a 'repeated violation' to avoid potential disputes with Mr. Sandless.