Can Mr. Sandless provide services to Regional Accounts through any other licensee or franchisee utilizing the Proprietary Marks?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3.3 If the Regional Account determines not to use your services, if you elect not to provide services to a Regional Account in conformity with the terms and conditions of the Regional Account bid or contract, or if the Regional Account is not satisfied with your work, we shall have the right, exercisable in our sole discretion, to:
- (i) provide, directly or through any other licensee or franchisee utilizing the Proprietary Marks, services to the Regional Account location(s) within the Designated Territory on the terms and conditions contained in the Regional Account bid or contract; and/or
- (ii) contract with another party to provide such services to the Regional Account location(s) within the Designated Territory on the terms and conditions contained in the Regional Account bid or contract between us and the Regional Account, utilizing the Proprietary Marks or any other trademarks, service marks or trade names.
- 2.3.4 Neither the direct provision by us (or a franchisee, licensee, or agent of ours) of services to Regional Accounts as authorized in Section 2.3.3(i) above, nor our contracting with another party to provide such services as authorized in 2.3.3(ii) above, shall constitute a violation of Section 2.1 of this Agreement relating to the Designated Territory, even if such services are delivered from a location within the Designated Territory. You surrender any compensation or consideration for work performed by others in the Designated Territory pursuant to this section.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, Mr. Sandless has the right to provide services to Regional Accounts through other licensees or franchisees utilizing the Proprietary Marks. A "Regional Account" is defined as any entity that manages or controls five or more businesses, whose presence is not confined to one designated territory. Mr. Sandless retains the exclusive right to negotiate and enter into agreements to provide services to these Regional Accounts, unless they specifically delegate this right in writing.
As a Mr. Sandless franchisee, you must refer all potential Regional Accounts to Mr. Sandless and are not permitted to negotiate terms with them directly. However, after a contract is agreed upon with a Regional Account for services within your designated territory, you have the option to perform those services under the terms of the Regional Account contract.
However, if the Regional Account chooses not to use your services, if you decline to provide services under the set terms, or if the Regional Account is unsatisfied with your work, Mr. Sandless has the right to provide services to that Regional Account through another franchisee or licensee using the Proprietary Marks. This action does not violate the franchisee's designated territory agreement, even if the services are delivered from within that territory, and the franchisee will not receive compensation for the work performed by others in their territory under these circumstances.