What is the geographic scope of the Mr. Sandless non-compete agreement after termination?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
with the Franchise and for a continuous uninterrupted period commencing upon the cessation or termination
of my position with Franchisee, regardless of the cause for termination, and continuing for two (2) years thereafter, either directly or indirectly, for myself, or through, on behalf of, or in conjunction with any person, persons, partnership, or corporation, own, maintain, operate, engage in, act as a consultant for, perform services for, or have any interest in any business offering wood floor refinishing, wood free care, wood floor cleaning, and floor maintenance, outdoor wood refinishing, wood care, wood cleaning, wood maintenance, concrete cleaning and sealing, and other forms of outdoor refinishing, cleaning and maintenance, or any selling any product or products which are the same as, or substantially similar to, any of the products or services offered by a Mr. Sandless Business, except at a Mr. Sandless Business, which is or is intended to be, located within:
- 7.1 the Franchisee's Designated Territory as defined in the Franchise Agreement;
- 7.2 Fifty (50) miles of Franchisee's Designated Territory; or
- 7.3 Fifty (50) miles of any Business operating under the System and the Proprietary Marks.
The prohibitions in this Paragraph 7 do not apply to my interests in or activities performed in connection with a Franchised Business. This restriction does not apply to my ownership of less than a five percent (5%) beneficial interest in the outstanding securities of any publicly held corporation.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the non-compete agreement restricts certain activities for a period of two years after termination or cessation of involvement with the franchise. This agreement applies to trained employees, shareholders, officers, directors, general partners, members, and managers of the franchisee.
The geographic scope of the non-compete includes the franchisee's designated territory, as defined in the Franchise Agreement. It also extends to a radius of fifty miles from the franchisee's designated territory. Furthermore, the non-compete applies within fifty miles of any business operating under the Mr. Sandless system and using its proprietary marks.
However, these restrictions do not apply to interests or activities performed in connection with another Mr. Sandless franchised business. Additionally, the non-compete does not restrict ownership of less than five percent of the securities of any publicly held corporation. This means that while franchisees and their key personnel are restricted from operating a competing business in the defined areas, they can still invest in larger, publicly traded companies that may have some overlap in services without violating the agreement.