Does the Mr. Sandless non-compete apply if a successor franchise agreement is signed?

Based on the 2025 Mr. Sandless Franchise Disclosure Document, the execution of a Successor Franchise Agreement supersedes the initial agreement in all respects. This implies that the terms of the new agreement, including any non-compete clauses, would then be in effect.

To enter into a Successor Franchise Agreement, a franchisee must be in compliance with all terms and conditions of the existing agreement, fulfill all monetary obligations, and comply with all other agreements with Mr. Sandless and its affiliates. The franchisee must also provide written notice of their intention to renew the Franchise Agreement within a specific timeframe, maintain possession of the business premises, and implement any changes to services or equipment to reflect Mr. Sandless's current image. Additionally, the franchisee must meet the then-current training requirements and sign a general release in favor of Mr. Sandless.

It is important to note that the Successor Franchise Agreement may differ significantly from the initial agreement, potentially including higher royalty and advertising fees. The specific terms of the non-compete agreement within the Successor Franchise Agreement would need to be carefully reviewed to understand its implications. A prospective franchisee should carefully examine the new franchise agreement to understand the non-compete terms and how they might differ from the original agreement.