Is a Mr. Sandless franchisee permitted to divert customers to a competitor?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, neither you, your principals, nor any member of the immediate family of you or your principals may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation:
18.1.2 Divert or attempt to divert any business or customer of the Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Proprietary Marks or the System.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from diverting business or customers to competitors. During the term of the Franchise Agreement, neither the franchisee, their principals, nor their immediate family members can directly or indirectly attempt to divert any business or customer of the Mr. Sandless Business to any competitor. This includes any action that could injure or prejudice the goodwill associated with Mr. Sandless's Proprietary Marks or the System.
This restriction is a standard clause in franchise agreements to protect the brand and the franchise system. It ensures that franchisees are fully committed to growing their Mr. Sandless business and not undermining it by directing customers to other services. This commitment is crucial for maintaining the integrity and reputation of the Mr. Sandless brand.
This clause aims to prevent franchisees from exploiting the Mr. Sandless brand recognition and customer base to benefit a competing business, even indirectly. Franchisees should be aware that violating this provision could lead to legal consequences and potential termination of their franchise agreement.