Who is included in the restriction from participating in a competitive business after the Mr. Sandless agreement terminates?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
18.2 After the Term of This Agreement
- 18.2.1 For a period of two (2) years after the expiration (provided you have not entered into a successor franchise agreement), transfer or termination of this Agreement, regardless of the cause, neither you, your principals, nor any member of the immediate family of you or your principals may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation participate in any Competitive Business which includes sanding, dustless refinishing, screening and recoats, sandless refinishing, wood polishing, wood floor care, wood floor cleaning, floor maintenance, floor care, floor refinishing, and floor cleaning for tile, VCT, terrazzo, marmoleum, linoleum, vinyl, asphalt, rubber, laminates, concrete, slate, brick, stone, granite, grout sealing and coloring, ceramic floors, and cabinet refinishing, and exterior wo
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the non-compete agreement extends beyond just the franchisee. Specifically, for a period of two years after the franchise agreement expires, is transferred, or is terminated (regardless of the reason), the following individuals are restricted from participating in a competitive business: the franchisee, their principals, and any member of the immediate family of the franchisee or their principals.
This restriction means that these individuals cannot directly or indirectly engage in a competitive business, whether for themselves or through another entity like a partnership or corporation. The definition of a "Competitive Business" includes a wide array of services such as sanding, dustless refinishing, screening and recoats, sandless refinishing, wood polishing, wood floor care, floor maintenance, floor care, floor refinishing, and floor cleaning for various surfaces like tile, VCT, terrazzo, and even cabinet refinishing and exterior wood refinishing.
This clause is designed to protect Mr. Sandless's market position and confidential information by preventing those closely associated with the franchise from leveraging their knowledge to compete against it after the agreement ends. Franchisees should carefully consider the implications of this extended non-compete, especially if family members are involved in the business or have plans to enter a similar industry in the future. It is important to note that this restriction applies regardless of why the franchise agreement ended, including expiration, transfer, or termination.