Is a Mr. Sandless franchisee permitted to negotiate terms with Regional Accounts?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the exclusive right to negotiate and enter into agreements or approve forms of agreements to provide services to any business which owns, manages, controls or otherwise has responsibility for buildings or commonservices in more than 5 locations and whose presence is not confined within any one franchisee's designated territory(ies) (a "Regional Account"). After we sign a contract with a Regional Account, we may, at our option, provide you the opportunity to perform the services under the Regional Account contract and for the prices we negotiated with the Regional Account. If we choose to, or if you choose not to provide services to the Regional Account, or if the Regional Account is not satisfied with your work, we may provide the services ourselves directly, through our Affiliate, or through another franchisee or third-party, even if the job site is within your Designated Territory, and without compensation to you. You must refer all potential Regional Accounts to us. You are not permitted to negotiate terms with any Regional Account.
Source: Item 12 — TERRITORY (FDD pages 25–26)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, franchisees are explicitly prohibited from negotiating terms with Regional Accounts. Mr. Sandless retains the exclusive right to negotiate and enter into agreements with businesses that have multiple locations (more than 5) across different franchisee territories. These are defined as "Regional Accounts."
Mr. Sandless may offer franchisees the opportunity to fulfill services under these Regional Account contracts at the prices Mr. Sandless has already negotiated. However, the franchisee is not obligated to accept this opportunity. If the franchisee declines, or if Mr. Sandless or the Regional Account is dissatisfied with the franchisee's performance, Mr. Sandless reserves the right to provide the services directly, through an affiliate, another franchisee, or a third party, even within the original franchisee's designated territory. In such cases, the original franchisee will not receive any compensation.
This arrangement requires franchisees to refer all potential Regional Accounts to Mr. Sandless. This policy ensures that Mr. Sandless maintains control over large, multi-location clients and can dictate the terms of service. For a prospective franchisee, this means they will not have the opportunity to directly pursue or negotiate with larger regional or national businesses, potentially limiting their revenue opportunities and requiring them to rely on Mr. Sandless to secure and assign these accounts.