Does the Mr. Sandless post-term restriction on competitive businesses apply to members of my immediate family?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, 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:
18.1.1 Own, maintain, engage in, be employed by, lend money to, extend credit to or have any interest in any other business offering wood floor refinishing, including 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 (a "Competitive Business"); provided, however, that this Section does not apply to your operation of any other Mr. Sandless Business pursuant to a valid franchise agreement with us or your ownership of less than five percent (5%) of any publicly held company;
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the post-term restriction on competitive businesses does not apply to members of your immediate family. However, during the term of the agreement, neither you, your principals, nor any member of the immediate family of you or your principals may engage in a Competitive Business.
Specifically, during the term of the agreement, you and your immediate family are prohibited from owning, maintaining, engaging in, being employed by, lending money to, extending credit to, or having any interest in any business offering wood floor refinishing and related services similar to those offered under the Mr. Sandless system. This restriction is in place to protect Mr. Sandless's market position and prevent franchisees from directly competing with the brand while still under the franchise agreement.
After the termination of the agreement, the restrictions on operating a competitive business only apply to the franchisee themselves, and do not extend to immediate family members. This post-term restriction lasts for two years and is limited to the franchisee's designated territory and within 50 miles of that territory or any other Mr. Sandless business. This is a common practice in franchising to protect the brand's market share and confidential information after a franchisee leaves the system.