Does Mr. Sandless reserve the right to specify all items utilized in the operation of the Business?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
se kit, tollfree number fee, Gmail, materials and supplies.
We specify the use of a standardized vehicle dedicated to the Business, which can be any type as long as it holds the equipment and is silver in color.. If you are purchasing a Mr. Sandless Business only, your service vehicle must be silver.
If you wish to purchase any item that we have not yet approved, or you wish to purchase from a supplier that we have not yet approved, you must make a written request to us and furnish us with any information we may reasonably need to evaluate the proposed item or supplier. We will make a good faith effort to notify you of our approval within 15 days of receiving such information. Our failure to approve a supplier within this 15-day period will constitute disapproval of the proposed supplier. You must reimburse our costs related to our evaluation of the proposed item or supplier, not to exceed $500. We have the right to revoke our approval of any item or supplier that no longer meets our criteria or does not serve the needs of the franchise network as a whole. We will notify you in writing, such as by e-mail or through changes to our Operations Manual, of any changes to our lists of approved supplies and approved suppliers. These lists are subject to change at any time.
To maintain the high quality and uniformity of System services and products, and to enhance the Business' image, we have established standards and specifications for other products, services, and equipment. Standards and specifications are provided to franchisees by way of amendments to the Operations Manual or otherwise in writing. We not issue our standards and specifications or otherwise make them available to you or any supplier. In some cases, we may specify particular brand names and model numbers (e.g., for equipment). Items for which we have issued specifications may be purchased from any supplier who sells the items meeting the specifications.
Our President, Chief Executive Officer and Chief Financial Officer, Daniel J. Prasalowicz, has a 100% ownership interest in us, and we are an approved supplier as described above. None of our officers owns an interest in any other supplier. We have the right to add or revise categories of items which are subject to requirements or restrictions on purchases, and may also modify our specifications, in our discretion. We reserve the right to specify all items utilized in the operation of the Business.
We estimate that the costs of your purchases from designated or approved sources, or according to our standards and specification, will range from 40% to 80% of the total cost of establishing your Business, and approximately 5% to 7% of the total cost of operating your Business. We may, in our sole discretion, negotiate purchase
arrangements with suppliers for the benefit of all Mr. Sandless Businesses in the System. There are currently no purchasing or distribution cooperatives in existence for the System. We do not provide any material benefit (such as successor rights or the right to purchase additional territories) based on your purchase of particular products or services or use of designated or approved sources.
We also reserve the right to earn rebates, commissions or other forms of compensation from our approved suppliers based on their sales to our franchisees. We currently do not receive these forms of compensation. If we do receive this compensation, there will be no restriction on our use of these funds.
Insurance
You must obtain and maintain insurance meeting our requirements and all policies must name us as an additional insured. Our then-current insurance requirements will be included in the Operations Manual, and may change during the term of your Franchise Agreement. You must comply with any changes we mandate for insurance coverages. Our current minimum insurance requirements include:
- o General Liability including Personal and Advertising Liability is required with limits of $500,000 per occurrence and $1,000,000 aggregate limit, with a per project aggregate. The policy should include contractual liability covering claims from both direct and vicarious liability.
- o Per Project Aggregate.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, Mr. Sandless retains the authority to specify all items used in the operation of a Mr. Sandless Business. This means that as a franchisee, you may be required to use certain products, equipment, and supplies that Mr. Sandless designates. Mr. Sandless also has the right to add or revise categories of items which are subject to requirements or restrictions on purchases, and may also modify specifications, at their discretion.
Mr. Sandless also specifies the use of a standardized vehicle dedicated to the Business, which must be silver in color. Franchisees must purchase or lease products, including supplies, branded clothing, inventory items, and equipment, from designated or approved suppliers, which may include Mr. Sandless. Franchisees must also enter into service agreements with approved vendors, as directed by Mr. Sandless. While Mr. Sandless may be an approved supplier of certain items like equipment, tools, inventory, job tins, and uniforms, franchisees are not always required to purchase these items directly from them. However, Mr. Sandless is currently the only approved supplier for the Franchise Starter Kit, invoices, and after-care packs.
If a franchisee wishes to purchase an item or from a supplier not yet approved, they must submit a written request to Mr. Sandless with all necessary information for evaluation. Mr. Sandless will then make a good faith effort to notify the franchisee of their approval within 15 days of receiving the information. Failure to approve a supplier within this 15-day period constitutes disapproval. The franchisee must also reimburse Mr. Sandless for costs related to the evaluation, up to $500. Mr. Sandless retains the right to revoke approval of any item or supplier that no longer meets their criteria or serves the needs of the franchise network. Franchisees will be notified in writing of any changes to the lists of approved supplies and suppliers, which are subject to change at any time.
Mr. Sandless estimates that the costs of purchases from designated or approved sources, or according to their standards and specifications, will 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. Mr. Sandless may negotiate purchase arrangements with suppliers for the benefit of all Mr. Sandless Businesses in the System. Mr. Sandless also reserves the right to earn rebates, commissions, or other forms of compensation from approved suppliers based on their sales to franchisees. In the year ended December 31, 2024, Mr. Sandless derived $277,344.28 (18%) of their total gross revenues of $1,516,126.42 from required franchisee purchases, including convention fees, administration fees, ad fund fees, franchise kit, toll-free number fee, Gmail, materials, and supplies.