Are Mr. Sandless franchisees entitled to a share of the proceeds from sales made through alternative channels of distribution within their territory?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You understand that this Agreement grants you no rights: (i) to distribute such products via alternative channels of distribution as described in this section; or (ii) to share in any of the proceeds received by any party from such sales via alternative channels of distribution.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees do not have the right to a share of proceeds from sales via alternative distribution channels. Mr. Sandless retains the right to distribute products through various channels, including home improvement stores, home shows, the internet, and mail order.
This means that while a franchisee operates within a designated territory, Mr. Sandless can also sell products directly or through other avenues within that same territory. The franchisee will not receive any portion of the revenue generated through these alternative channels.
This aspect of the agreement could impact a franchisee's potential revenue, as Mr. Sandless is not restricted from pursuing other sales methods within the franchisee's territory. A prospective franchisee should consider the potential impact of these alternative channels on their business and discuss this with Mr. Sandless to understand their strategy and expectations for these channels.