factual

Is the license granted to a Mr. Sandless franchisee to use the Proprietary Marks exclusive or non-exclusive?

Mr_Sandless Franchise · 2025 FDD

Answer from 2025 FDD Document

We hereby grant to you, and you hereby accept, a nonexclusive franchise to establish and operate one (1) Franchised Business pursuant to the terms of this Agreement. This Agreement does not give you the right to establish additional Franchised Businesses.

Source: Item 22 — CONTRACTS (FDD page 42)

What This Means (2025 FDD)

According to Mr. Sandless's 2025 Franchise Disclosure Document, the franchise granted to a franchisee is nonexclusive. Specifically, the agreement grants the franchisee the right to establish and operate one franchised business under the terms of the agreement, but it does not grant the right to establish additional franchised businesses. This means that Mr. Sandless retains the right to grant other franchises, and to operate its own businesses, that may be in competition with the franchisee.

Mr. Sandless also retains the right to distribute products through alternative channels of distribution, such as home improvement stores or the internet, even within the franchisee's designated territory. The franchisee will not share in any proceeds from these alternative channels. Mr. Sandless will not sell Mr. Sandless services in a "do it yourself" kit by any means which bypasses the franchise System.

This non-exclusive arrangement has significant implications for a prospective Mr. Sandless franchisee. It means that Mr. Sandless could potentially establish other franchises or operate its own businesses in the same general area, increasing competition. Additionally, the franchisee has no control over Mr. Sandless's distribution of products through other channels, which could also impact their sales. Therefore, a prospective franchisee should carefully consider the potential impact of this non-exclusive arrangement on their business before investing in a Mr. Sandless franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.