Does the Mr. Sandless franchisee have the right to operate outside of the 'Designated Territory'?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ly agree as follows:
1. FRANCHISE GRANT
We hereby grant to you, and you hereby accept, a nonexclusive franchise to establish and operate one (1) Franchised Business pursuant to the terms of this Agreement. This Agreement does not give you the right to establish additional Franchised Businesses.
2. TERRITORY AND LOCATION
2.1 Designated Territory
You shall operate your Business only within the designated territory identified, or (if the parties have not agreed upon a territory at the time this Agreement is signed) to be identified, in the Data Sheet (the "Designated Territory"). The size and configuration of your Designated Territory is defined in terms of contiguous zip codes and/or by a map attached to this Agreement as Attachment 2. This Agreement grants you the right to operate the Franchised Business within the Territory only. You acknowledges that (i) the Designated Territory was mutually agreed upon by you and us, (ii) prior to the Effective Date hereof, you conducted your own due diligence with regard to potential customers and other matters relative to the operation of the Franchised Business in the Designated Territory, and (iii) our agreement to the Designated Territory is permission only, does not constitute a representation, promise, warranty, or guarantee, express or implied, by us that the Franchised Business operated therein will be profitable or otherwise successful, and cannot, and does not, create any liability for us. You may not offer or sell any products or services offered by the Business to customers located outside of the Designated Territory. However, you may offer or sell products or services to customers located outside of and adjacent to your Designated Territory if the customer is located in an area that is not serviced by another System franchisee, and you have received prior written approval from us, which approval may be granted or denied at our sole discretion.
During the term of this Agreement, so long as you are in substantial compliance with the terms and conditions of this Agreement, we will not establish or locate, or grant any third party the right to establish or locate, another Mr.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees are generally restricted to operating within their designated territory. The agreement grants the franchisee the right to operate their Mr. Sandless business only within the agreed-upon territory, which is defined by contiguous zip codes or a map attached to the agreement.
However, the Mr. Sandless franchisee may offer or sell products or services to customers located outside and adjacent to their designated territory if the customer is not serviced by another franchisee and if the franchisee receives prior written approval from Mr. Sandless. This approval can be granted or denied at Mr. Sandless's discretion.
The Mr. Sandless franchisee is not permitted to solicit customers or advertise outside their designated territory without prior written approval from Mr. Sandless. If a franchisee violates this territorial marketing restriction without approval, they may be fined $500 per occurrence. Certain advertising methods, like radio and television, may reach a larger audience outside the designated territory, and this will not be a violation of the agreement if the franchisee offers other system franchisees the opportunity to participate in such advertising.