Is a Mr. Sandless franchisee granted an exclusive territory?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
l offices within your Designated Territory(ies) without our express written consent, which will not be unreasonably withheld.
You will not receive an exclusive territory. You may face competition from 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. These alternative channels of distribution may include home improvement stores, home shows, the internet (including orders via our Website), mail order or other distribution methods or supply chains. We have the sole right as to any distribution arrangements relating to these alternative channels or distribution. We are not required to pay you any compensation for soliciting or accepting orders from inside your Designated Territory(ies) through these alternative channels of distribution.
You have no right: (i) to distribute products through these alternative channels of distribution; or (ii) to share in the distribution proceeds received by any party. Except as described above, we and/or our affiliates may not establish other franchises or company owned units selling similar products or services under a different trademark in your Designated Territory. We will not sell the Mr. Sandless services in a "do it yourself" kit by any means which bypasses the franchise System.
Source: Item 12 — TERRITORY (FDD pages 25–26)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. The Franchise Agreement grants the right to operate within a Designated Territory, typically containing a population of approximately 200,000, defined by contiguous zip codes or a map. While Mr. Sandless will not establish or license another Mr. Sandless business within the franchisee's Designated Territory if the franchisee is in compliance with the Franchise Agreement, franchisees may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Mr. Sandless.
Mr. Sandless retains the right to distribute products, including proprietary products, using their trademarks or other marks, both inside and outside the Designated Territory through alternative channels of distribution such as home improvement stores, home shows, the internet, and mail order, without compensating the franchisee. Additionally, Mr. Sandless has the exclusive right to negotiate and enter into agreements with Regional Accounts, defined as businesses with multiple locations not confined to a single franchisee's territory.
If Mr. Sandless secures a Regional Account, the franchisee may have the opportunity to provide services under the negotiated contract. However, Mr. Sandless can choose to provide the services directly, through an affiliate, another franchisee, or a third party, even if the job site is within the franchisee's Designated Territory, without compensating the franchisee. The franchisee must refer all potential Regional Accounts to Mr. Sandless and cannot negotiate terms with them. These conditions highlight that while a franchisee has a defined territory, Mr. Sandless retains significant control over distribution channels and large accounts, which could impact the franchisee's business potential.