What must a Mr. Sandless franchisee comply with to keep their rights to their Designated Territory?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
om other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
To keep your rights to your Designated Territory(ies), you must comply with the terms of the Franchise Agreement and satisfy the performance criteria described in Section 2.1.2 of the Franchise Agreement. For a Mr. Sandless Business, beginning six months after the Grand Opening of your Business, you must consistently perform eight floor jobs per month. Your rights to the Designated Territory(ies), and your Franchise Agreement, may be terminated if you do not achieve the performance criteria or if you otherwise breach the terms of the Franchise Agreement.
If you are in compliance with your Franchise Agreement, we will not establish and operate or license anyone else to establish or operate another Business under the Mr. Sandless trademarks within your Designated Territory(ies). We retain the right to establish, or to grant to others the right to establish, Businesses under the the Mr. Sandless trademarks outside of your Designated Territory(ies) and on any terms that we deem advisable. We will not offer you a right of first refusal to purchase from us other business opportunities we offer under other brands and trademarks, and we have the right to sell business opportunities under other brands and trademarks, to others in your Designated Territory(ies).
We also have the right to distribute products (including proprietary products) using the Proprietary Marks or using other marks or private labeling both inside and outside your Designated Territory(ies) in the manner and through alternative channels of distribution as we determine in our sole discretion, and without compensation to you.
Source: Item 12 — TERRITORY (FDD pages 25–26)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, to maintain rights to the Designated Territory, a franchisee must comply with the terms outlined in the Franchise Agreement and meet specific performance criteria detailed in Section 2.1.2 of the Franchise Agreement. Specifically, a Mr. Sandless franchisee must consistently perform eight floor jobs per month, beginning six months after the Grand Opening of their Business. Failure to meet these performance criteria or any breach of the Franchise Agreement terms could lead to the termination of the rights to the Designated Territory and the Franchise Agreement itself.
This requirement ensures that franchisees are actively engaged in operating their Mr. Sandless business and meeting a minimum level of service provision within their territory. It also protects Mr. Sandless's brand standards and service quality. The performance benchmark of eight floor jobs per month sets a tangible goal for franchisees to strive for, encouraging consistent effort in marketing and service delivery.
However, the FDD also states that the territory is not exclusive, and franchisees may face competition from other franchisees, company-owned outlets, or other channels of distribution or competitive brands controlled by Mr. Sandless. This means that even if a franchisee meets the performance criteria, their business could still be impacted by external competitive factors. Additionally, Mr. Sandless retains the right to distribute products through alternative channels, such as home improvement stores or the internet, without compensating the franchisee, which could also affect their business within their Designated Territory.
Prospective franchisees should carefully consider these factors and evaluate their ability to consistently meet the performance criteria while navigating potential competition and alternative distribution channels. Understanding the terms of the Franchise Agreement and the specific requirements outlined in Section 2.1.2 is crucial for maintaining the rights to the Designated Territory and ensuring the long-term viability of their Mr. Sandless franchise.