Does a Mr. Sandless franchisee receive 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.
Regional Accounts
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.
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. Instead, Mr. Sandless grants franchisees the right to operate within a "Designated Territory" that contains a population of approximately 200,000 people. This territory is defined by contiguous zip codes or depicted on a map and is outlined in Attachment 2 of the Franchise Agreement. Franchisees can purchase up to three additional territories, each with an estimated population of 100,000, potentially reaching a maximum population of approximately 500,000 under one Franchise Agreement.
Despite having a Designated Territory, Mr. Sandless franchisees face competition from other franchisees, company-owned outlets, and other channels of distribution or competitive brands controlled by Mr. Sandless. Mr. Sandless retains the right to establish or license others to establish businesses under the Mr. Sandless trademarks outside the franchisee's Designated Territory. They also reserve the right to distribute products, including proprietary products, using the Proprietary Marks 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.
Furthermore, Mr. Sandless retains the exclusive right to negotiate and enter into agreements with Regional Accounts, defined as businesses with more than 5 locations not confined to a single franchisee's territory. Mr. Sandless may offer the franchisee the opportunity to service these accounts at negotiated prices, but if the franchisee declines or the Regional Account is unsatisfied, Mr. Sandless can provide the services directly, through an affiliate, another franchisee, or a third party, even within the franchisee's Designated Territory, without compensation to the franchisee. Franchisees are required to refer all potential Regional Accounts to Mr. Sandless and are not permitted to negotiate terms with them.
To maintain the rights to their Designated Territory, Mr. Sandless franchisees must comply with the terms of the Franchise Agreement and meet performance criteria, specifically completing eight floor jobs per month beginning six months after the Grand Opening. Failure to meet these criteria or any breach of the Franchise Agreement may result in termination of the agreement and loss of the Designated Territory. This lack of exclusivity and the various competitive factors, combined with performance requirements and potential external service provisions, highlight important considerations for prospective Mr. Sandless franchisees.