Can Mr. Sandless refuse to renew a franchise on terms not generally available to other franchisees?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) A provision that permits the franchisor to refuse to renew a franchise on terms generally available to other franchisees of the same class or type under similar circumstances.
This section does not require a renewal provision.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, Mr. Sandless is prohibited from refusing to renew a franchise if the renewal terms are not generally available to other franchisees of the same class or type under similar circumstances. However, the FDD also clarifies that this section does not require Mr. Sandless to offer a renewal provision at all.
This means that while Mr. Sandless cannot discriminate in renewal terms among similar franchisees, they are not obligated to offer renewal options in the first place. This distinction is important for potential franchisees to understand, as it highlights that renewal is not guaranteed.
Prospective franchisees should consider the initial franchise term of 10 years and the possibility of securing two additional 5-year terms if they comply with the Franchise Agreement and meet certain conditions. It is important to note that the ability to renew is contingent upon compliance with the agreement and satisfaction of all monetary obligations. Franchisees should carefully evaluate these conditions and their ability to meet them to ensure they can potentially extend their franchise term beyond the initial period.