Does Mr. Sandless require franchisees to offer participation to other franchisees in contiguous territories when soliciting or advertising outside their designated territory?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not permitted to solicit customers and/or advertise outside the Designated Territory, except to the extent that you have received our prior written approval to do so. Such approval to be granted or denied is at our sole discretion. We may condition our authorization upon your agreement to offer System franchisees that are operating Businesses in contiguous territories the opportunity to participate in, and share the expense of, such solicitation and/or advertising. You may not advertise your Business or any products or services offered by the Business via the Internet without our prior written consent, which may be given or withheld in our sole discretion. Notwithstanding the foregoing, we recognize that certain methods of advertising (such as radio and television) may reach a larger audience outside of your Designated Territory and, in such event and provided you have offer other System franchisees the opportunity to participate in such advertising, you will not be in violation of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees are generally not permitted to solicit customers or advertise outside their designated territory without prior written approval from Mr. Sandless. However, Mr. Sandless may condition its authorization for such advertising on the franchisee's agreement to offer franchisees in contiguous territories the opportunity to participate in and share the expense of the advertising. This means that if a Mr. Sandless franchisee wants to market outside their territory and receives approval, they might have to allow neighboring franchisees to join the advertising campaign and share the costs.
This condition ensures that advertising efforts that extend beyond a single territory benefit multiple franchisees and that the costs are distributed fairly. It prevents a single franchisee from dominating a broader market area without involving or compensating those whose territories are also reached by the advertising. This requirement applies to general solicitation and advertising, but the franchisee is not in violation of the agreement if they offer other system franchisees the opportunity to participate in advertising methods like radio and television that may reach a larger audience outside of their designated territory.
It's important to note that Mr. Sandless retains sole discretion in granting or denying approval for advertising outside the designated territory. This provision gives Mr. Sandless control over marketing activities and ensures that they align with the overall brand strategy and the interests of all franchisees. Franchisees should factor in the potential costs and collaborative requirements when planning their marketing strategies and consider the benefits of shared advertising opportunities with neighboring territories.