What is Mr. Sandless' obligation regarding establishing another Mr. Sandless Business within a franchisee's Designated Territory?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
tside 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 Mr. Sandless's 2025 Franchise Disclosure Document, during the term of the Franchise Agreement, Mr. Sandless will not establish or authorize a third party to establish another Mr. Sandless Business using their system and proprietary marks within the franchisee's designated territory. This obligation is contingent upon the franchisee being in substantial compliance with the terms and conditions of the Franchise Agreement.
However, this protection is subject to exceptions as outlined in Section 2.2 of the agreement, which are not detailed in this excerpt. The agreement does not grant the franchisee any other territorial rights beyond this protection within their designated territory.
The document also states that a franchisee may purchase additional territories of approximately 100,000 population each, up to a total of four territories, by paying an additional territory fee of $5,000 per territory. Upon purchasing additional territories, Attachment 2 of the Franchise Agreement will be amended to reflect the change.