For how long after the termination of the Mr. Sandless agreement are franchisees restricted from participating in a competitive business?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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 wood refinishing or any other services and/or products similar to those offered under the System.
18.2.2 For a period of two (2) years after the expiration, 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:
(i) Own, maintain, engage in, be employed by, or have any interest 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 wood refinishing or any other services and/or products similar to those offered un
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, franchisees are restricted from participating in a competitive business for a period of two years after the expiration, transfer, or termination of the Franchise Agreement. This restriction applies regardless of the cause of termination. The franchisee, their principals, or any member of their immediate family are subject to this covenant.
During this two-year period, franchisees are prohibited from directly or indirectly engaging in any competitive business. This includes owning, maintaining, being employed by, or having any interest in a business that offers services or products similar to those offered under the Mr. Sandless system. These services include 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 various materials such as tile, VCT, terrazzo, and concrete.
This non-compete clause is a standard practice in franchising to protect the franchisor's business model, trade secrets, and customer relationships. Prospective Mr. Sandless franchisees should carefully consider the implications of this restriction, as it could limit their ability to work in the same industry for two years after leaving the franchise system. It is advisable to seek legal counsel to fully understand the scope and enforceability of this clause before entering into a franchise agreement.