What is the relationship between the Mr. Sandless territory (Item 12) and the approved suppliers (Item 8)?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are in compliance with your Franchise Agreement, we will not establish and operate or license anyone else to establish or operate another Business under the Mr. Sandless trademarks within your Designated Territory(ies). We retain the right to establish, or to grant to others the right to establish, Businesses under the the Mr. Sandless trademarks outside of your Designated Territory(ies) and on any terms that we deem advisable. We will not offer you a right of first refusal to purchase from us other business opportunities we offer under other brands and trademarks, and we have the right to sell business opportunities under other brands and trademarks, to others in your Designated Territory(ies).
We also have the right to distribute products (including proprietary products) using the Proprietary Marks or using other marks or private labeling both inside and outside your Designated Territory(ies) in the manner and through alternative channels of distribution as we determine in our sole discretion, and without compensation to you. These alternative channels of distribution may include home improvement stores, home shows, the internet (including orders via our Website), mail order or other distribution methods or supply chains. We have the sole right as to any distribution arrangements relating to these alternative channels or distribution. We are not required to pay you any compensation for soliciting or accepting orders from inside your Designated Territory(ies) through these alternative channels of distribution.
You have no right: (i) to distribute products through these alternative channels of distribution; or (ii) to share in the distribution proceeds received by any party. Except as described above, we and/or our affiliates may not establish other franchises or company owned units selling similar products or services under a different trademark in your Designated Territory. We will not sell the Mr. Sandless services in a "do it yourself" kit by any means which bypasses the franchise System.
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, Item 12 outlines the territory granted to a franchisee, while Item 8 details the restrictions on sources of products and services. The FDD does not explicitly connect the territory to approved suppliers. However, Mr. Sandless retains the right to distribute products through alternative channels both inside and outside a franchisee's designated territory. This includes methods like home improvement stores, the internet, and mail order, without compensating the franchisee.
The Mr. Sandless FDD specifies that franchisees must purchase or lease products, including supplies, branded clothing, inventory items, and equipment, from designated or approved suppliers. Mr. Sandless may be an approved supplier, and is currently the only approved supplier for the Franchise Starter Kit, invoices, and after care packs. All supplies ordered through Mr. Sandless are subject to a 10% administrative fee over their cost.
While the FDD does not state that approved suppliers are limited or exclusive to a franchisee's territory, the franchisee is restricted from soliciting or performing work outside their Designated Territory unless they have prior written permission from Mr. Sandless and the customer is not serviced by another franchisee. The cost of purchases from approved suppliers is estimated to range from 40% to 80% of the total cost of establishing the business, and approximately 5% to 7% of the total cost of operating the business.
A prospective franchisee should inquire whether Mr. Sandless intends to use alternative channels of distribution within their territory, and if so, what impact that could have on their business. They should also ask if there are any plans to change approved suppliers, and how those changes could affect costs and operations within their territory.