Is the license granted to Mr. Sandless by the franchisee a worldwide license?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ly agree as follows:
1. FRANCHISE GRANT
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.
2. TERRITORY AND LOCATION
2.1 Designated Territory
You shall operate your Business only within the designated territory identified, or (if the parties have not agreed upon a territory at the time this Agreement is signed) to be identified, in the Data Sheet (the "Designated Territory"). The size and configuration of your Designated Territory is defined in terms of contiguous zip codes and/or by a map attached to this Agreement as Attachment 2. This Agreement grants you the right to operate the Franchised Business within the Territory only. You acknowledges that (i) the Designated Territory was mutually agreed upon by you and us, (ii) prior to the Effective Date hereof, you conducted your own due diligence with regard to potential customers and other matters relative to the operation of the Franchised Business in the Designated Territory, and (iii) our agreement to the Designated Territory is permission only, does not constitute a representation, promise, warranty, or guarantee, express or implied, by us that the Franchised Business operated therein will be profitable or otherwise successful, and cannot, and does not, create any liability for us. You may not offer or sell any products or services offered by the Business to customers located outside of the Designated Territory. However, you may offer or sell products or services to customers located outside of and adjacent to your Designated Territory if the customer is located in an area that is not serviced by another System franchisee, and you have received prior written approval from us, which approval may be granted or denied at our sole discretion.
During the term of this Agreement, so long as you are in substantial compliance with the terms and conditions of this Agreement, we will not establish or locate, or grant any third party the right to establish or locate, another Mr. Sandless Business using the System and Proprietary Marks within the Designated Territory, except as set forth in Section 2.2 below. This Agreement does not grant you any other territorial rights. Notwithstanding the foregoing, if y
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the franchise agreement grants the franchisee rights only within a specifically defined territory. Section 2.1 of the agreement states that the franchisee must operate their business within the "Designated Territory" outlined in the Data Sheet or Attachment 2, which is defined by contiguous zip codes or a map. The agreement explicitly grants the right to operate the franchised business only within this territory.
Mr. Sandless franchisees are restricted from soliciting customers or advertising outside their Designated Territory without prior written approval from the franchisor. While the franchisor may allow sales to customers outside the territory if they are in an unserviced area and approval is granted, this does not extend the territory rights. The franchisor also retains the right to establish Mr. Sandless businesses outside the franchisee's designated territory.
Furthermore, the Mr. Sandless agreement allows franchisees to purchase additional territories, each approximately 100,000 in population, up to a maximum of four territories, for an additional fee of $5,000 per territory. This provision indicates that expansion is limited and controlled, and does not imply a worldwide license. The agreement also specifies that the franchisee will not hinder Mr. Sandless from using or licensing the Proprietary Marks in any jurisdiction, reinforcing that the franchisee's rights are limited to their designated area and do not extend globally.
In summary, the Mr. Sandless franchise agreement explicitly defines and limits the franchisee's operating territory, and does not grant any rights that could be interpreted as a worldwide license. The franchisee's rights are confined to the agreed-upon Designated Territory, with limited exceptions for adjacent, unserviced areas with franchisor approval.