What obligations does a Mr. Sandless franchisee have regarding pre-opening purchases (Item 9) and how do these relate to approved suppliers (Item 8)?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| OBLIGATION | SECTION IN | DISCLOSURE | |
|---|---|---|---|
| FRANCHISE AGREEMENT | DOCUMENT ITEM | ||
| a. Site selection and acquisition/ lease | 2 | 11 and 12 | |
| b. Pre-opening purchases/ leases | 2, 7 and 9 | 5, 7 and 8 |
When establishing the Business, you must purchase or lease products, including supplies, branded clothing, inventory items and equipment, from designated or approved suppliers, which may include us, and you must enter into service agreements with approved vendors, as directed by us. We may be an approved supplier, but not the only approved supplier, of equipment, tools, inventory, job tins, and uniforms, but you are not required to purchase these items from us. We are currently the only approved supplier for the Franchise Starter Kit, invoices and after care packs.
If you wish to purchase any item that we have not yet approved, or you wish to purchase from a supplier that we have not yet approved, you must make a written request to us and furnish us with any information we may reasonably need to evaluate the proposed item or supplier. We will make a good faith effort to notify you of our approval within 15 days of receiving such information. Our failure to approve a supplier within this 15-day period will constitute disapproval of the proposed supplier. You must reimburse our costs related to our evaluation of the proposed item or supplier, not to exceed $500. We have the right to revoke our approval of any item or supplier that no longer meets our criteria or does not serve the needs of the franchise network as a whole. We will notify you in writing, such as by e-mail or through changes to our Operations Manual, of any changes to our lists of approved supplies and approved suppliers. These lists are subject to change at any time.
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, franchisees have obligations regarding pre-opening purchases, as detailed in Item 9, which are closely tied to the approved suppliers outlined in Item 8. Specifically, Item 9b references sections in the Franchise Agreement (2, 7, and 9) and Disclosure Document Items (5, 7, and 8) that pertain to pre-opening purchases and leases. This indicates that franchisees are required to make certain purchases or enter into leases before opening their Mr. Sandless business.
Item 8 elaborates on these obligations by stating that when establishing the business, franchisees must purchase or lease products, including supplies, branded clothing, inventory items, and equipment, from designated or approved suppliers. These suppliers may include Mr. Sandless itself. Franchisees must also enter into service agreements with approved vendors as directed by Mr. Sandless. While Mr. Sandless may be an approved supplier for equipment, tools, inventory, job tins, and uniforms, franchisees are not always required to purchase these items directly from them. However, Mr. Sandless is currently the only approved supplier for the Franchise Starter Kit, invoices, and after-care packs, making these purchases mandatory from Mr. Sandless.
Mr. Sandless also imposes restrictions on sources of products and services to maintain quality and uniformity. If a franchisee wishes to purchase an item or from a supplier not yet approved, they must submit a written request and provide necessary information for evaluation. Mr. Sandless will then make a good faith effort to notify the franchisee of their approval within 15 days. The franchisee must reimburse Mr. Sandless for evaluation costs, up to $500. Mr. Sandless retains the right to revoke approval of any item or supplier that no longer meets their criteria or serves the network's needs. These lists of approved supplies and suppliers are subject to change at any time, and franchisees will be notified in writing of any changes.
These requirements ensure that Mr. Sandless franchisees maintain consistent standards and quality in their operations. While franchisees have some flexibility in choosing suppliers for certain items, they must adhere to the approved supplier list and specifications set by Mr. Sandless. This system allows Mr. Sandless to control the quality of products and services offered under its brand name, while also potentially generating revenue through sales to franchisees and negotiating favorable purchase arrangements with suppliers. Franchisees should carefully review the list of required pre-opening purchases and approved suppliers to understand the initial investment and ongoing operational costs associated with the Mr. Sandless franchise.