What is the franchisee's obligation regarding the use of the Mr. Sandless System?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ess. Such assistance will be provided, at our option, by telephone, e-mail, facsimile, periodically through on-site assistance by appropriate personnel of ours, and/or other methods. We will make available to you any and all improvements and changes in our services or business methods to the same extent and in the same manner as they are made available to other franchisees.
9. YOUR OBLIGATIONS
9.1 Operations
You shall operate the Business during such hours of the day and such days of the year as we shall specify from time to time, subject only to applicable law.
9.2 Performance Criteria
You must consistently perform not less than eight (8) floor jobs a month within six (6) months of the Grand Opening of your Business. If you own multiple Mr. Sandless Businesses, then notwithstanding this Section 9.2, you must consistently perform, on a monthly basis, not less than eight (8) floor jobs plus an additional two (2) floor jobs for each territory you own and operate. Your failure to comply with this minimum performance criteria will be a material default of this Agreement and we will have the right, among others, to reduce the size of or your rights in the Designated Territory or to terminate this Agreement.
9.3 Compliance with Applicable Laws
You shall operate your Business in strict compliance with all applicable laws, regulations and ordinances including, without limitations, laws and regulations applicable to or affecting health and safety.
You and your principals agree to comply, and to assist us to the fullest extent possible in our efforts to comply, with Anti-Terrorism Laws, as described in Section 9.18 below.
9.4 Compliance with Our Policies and Procedures
You shall operate your Business in strict compliance with this Agreement and our standards, specifications, policies and procedures as set forth the Operations Manual, as it may be amended from time to time, or otherwise in writing. You shall at no time engage in deceptive, misleading or unethical practices or conduct which may have a negative impact on the reputation and goodwill of us, our affiliates, our franchisees, the System or the Proprietary Marks.
9.5 Best Efforts
You shall exploit the Designated Territory to its fullest potential, and use your best efforts to develop new customers, increase business and expand the market for all products and services authorized for sale by your Business through your personal participation and active promotion.
9.6 Personal Supervision
9.6.1 You (if you are an individual) or at least one (1) of your principals who owns at least a ten percent (10%) interest in the Business (if you are a corporation, partnership or limited liability company), shall personally supervise the day-to-day operation of the Business. At your request, we may permit you to operate the Business through a full-time designated manager (the "Designated Manager") who will work at least forty (40) hours per week and who will supervise the day-to-day operations of the
Business. However, the appointment of a Designated Manager shall not relieve you of any duties or obligations under this Agreement, and compliance with this Agreement and all aspects of the System shall be your sole responsibility. You may also hire a technical manager to oversee the Business' physical operations and the work performed under the Proprietary Marks ("Technical Manager"). The Designated Manager and Technical Manager must successfully complete our training program and sign Confidentiality and Non-Compete Agreements in the form attached as Attachment 4 to this Agreement prior to assuming their responsibilities. We shall be a third-party beneficiary of each Confidentiality and Non-Compete Agreement, with the independent right to enforce such agreement's terms.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees have several obligations regarding the use of the Mr. Sandless System. Franchisees must operate their business during the hours and days specified by Mr. Sandless, adhering to any changes made over time, provided that these specifications comply with applicable laws. Within six months of the business's grand opening, franchisees must consistently complete a minimum of eight floor jobs per month. For franchisees owning multiple Mr. Sandless businesses, this minimum increases to eight floor jobs plus an additional two floor jobs for each additional territory owned and operated. Failure to meet these performance criteria constitutes a material breach of the franchise agreement, potentially leading to a reduction in territory size or termination of the agreement.
Mr. Sandless franchisees must operate their businesses in strict compliance with all applicable laws, regulations, and ordinances, including those related to health and safety. Franchisees are also required to comply with Mr. Sandless's policies and procedures. Franchisees cannot hinder Mr. Sandless from using or licensing its Proprietary Marks. If the franchisee is a corporation, partnership, or limited liability company, they cannot include any portion of the Proprietary Marks in their entity's name, but they must register for fictitious name usage and provide Mr. Sandless with a copy of the registration. Franchisees also cannot use the Proprietary Marks in any website domain name without prior written consent from Mr. Sandless.
Mr. Sandless retains ownership of any modifications, changes, and improvements to the System developed by the franchisee, their principals, employees, or agents. Franchisees cannot introduce or offer any improvements to customers or use them in their franchised business without Mr. Sandless's consent. Franchisees are also restricted in their marketing activities. They are not permitted to solicit customers or advertise outside their designated territory without prior written approval from Mr. Sandless. Unauthorized marketing efforts, including online activities, can result in a fine of $500 per occurrence. Franchisees must also participate in any System-wide computer network, intranet system, or extranet implemented by Mr. Sandless.
Upon termination of the Franchise Agreement, franchisees must transfer all rights and interests in Electronic Advertising and Telephone Listings to Mr. Sandless. This includes domain names, social media accounts, software accounts, website access, telephone numbers, and directory listings related to the franchised business or the Marks. This ensures that Mr. Sandless maintains control over its brand and online presence, even after a franchise agreement ends. These obligations collectively ensure that franchisees operate within the Mr. Sandless System consistently and in compliance with the brand's standards and legal requirements.