Can Mr. Sandless franchisees do cooperative listings with other System franchisees?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not permitted to solicit customers and/or advertise outside the Designated Territory, except to the extent that you have received our prior written approval to do so. Such approval to be granted or denied is at our sole discretion. We may condition our authorization upon your agreement to offer System franchisees that are operating Businesses in contiguous territories the opportunity to participate in, and share the expense of, such solicitation and/or advertising. You may not advertise your Business or any products or services offered by the Business via the Internet without our prior written consent, which may be given or withheld in our sole discretion. Notwithstanding the foregoing, we recognize that certain methods of advertising (such as radio and television) may reach a larger audience outside of your Designated Territory and, in such event and provided you have offer other System franchisees the opportunity to participate in such advertising, you will not be in violation of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees may have the opportunity to participate in cooperative advertising with other Mr. Sandless franchisees in contiguous territories. However, this is not guaranteed.
Specifically, if a Mr. Sandless franchisee wants to solicit customers or advertise outside of their designated territory and receives written approval from Mr. Sandless to do so, Mr. Sandless may require the franchisee to offer other franchisees operating in adjacent territories the chance to participate in the advertising and share the costs. This means that while franchisees are generally restricted from advertising outside their territory without approval, there are circumstances where they may be able to expand their reach through cooperative efforts.
It's important to note that any approval for advertising outside the designated territory is at Mr. Sandless's sole discretion, and they can deny such requests. This clause ensures that Mr. Sandless maintains control over the brand's marketing and can coordinate advertising efforts across different territories. This also ensures that franchisees in neighboring territories have the opportunity to benefit from advertising that extends beyond a single territory's boundaries.