Who is restricted by the non-compete clause in the Mr. Sandless franchise agreement?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ed by the Company as | | | | | | | | | confidential. Unless the Company otherwise agrees in writing, I will disclose and/or use the Confidential | | | | | | | | | Information only in connection with my duties as of the Franchisee, and will | | | | | | | | | continue not to disclose any such information even after I cease to be in that position and will not use any | | | | | | | | | such information even after I cease to be in that position unless I can demonstrate that such information has | | | | | | | | | become generally known or easily accessible other than by the breach of an obligation of Franchisee under | | | 7. | | | | | | Except as otherwise approved in writing by the Company, I shall not, while in my position |
with the Franchise and for a continuous uninterrupted period commencing upon the cessation or termination
of my position with Franchisee, regardless of the cause for termination, and continuing for two (2) years thereafter, either directly or indirectly, for myself, or through, on behalf of, or in conjunction with any person, persons, partnership, or corporation, own, maintain, operate, engage in, act as a consultant for, perform services for, or have any interest in any business offering wood floor refinishing, wood free care, wood floor cleaning, and floor maintenance, outdoor wood refinishing, wood care, wood cleaning, wood maintenance, concrete cleaning and sealing, and other forms of outdoor refinishing, cleaning and maintenance, or any selling any product or products which are the same as, or substantially similar to, any of the products or services offered by a Mr. Sandless Business, except at a Mr. Sandless Business, which is or is intended to be, located within:
- 7.1 the Franchisee's Designated Territory as defined in the Franchise Agreement;
- 7.2 Fifty (50) miles of Franchisee's Designated Territory; or
- 7.3 Fifty (50) miles of any Business operating under the System and the Proprietary Marks.
The prohibitions in this Paragraph 7 do not apply to my interests in or activities performed in connection with a Franchised Business. This restriction does not apply to my ownership of less than a five percent (5%) beneficial interest in the outstanding securities of any publicly held corporation.
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- I agree that each of the foregoing covenants shall be constructed as independent of any other covenant or provision of this Agreement. If all or any portion of a covenant in this Agreement is held unreasonable or unenforceable by a court or agency having valid jurisdiction in an unappealed final decision to which the Company is a party, I expressly agree to be bound by any lesser covenant subsumed within the terms of such covenant that imposes the maximum duty by law, as if the resulting covenant were separately stated in and made part of this Agreement.
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- I understand and acknowledge that the Company shall have the right, in its sole discretion to reduce the scope of any covenant set forth in this Agreement, or any portion thereof, without my consent, effective immediately upon receipt by me of written notice thereof; and I agree to comply forthwith with any covenant as so modified.
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- The Company is a third party beneficiary of this Agreement and may enforce it, solely and/or jointly with the Franchisee. I am aware that my violation of this Agreement will cause the Company and the Franchisee irreparable harm; therefore, I acknowledge and agree that the Franchisee and/or the Company may apply for the issuance of an injunction preventing me from violating this Agreement, and I agree to pay the Franchisee and the Company all the costs it/they incur(s), including, without limitation, legal fees and expenses, if this Agreement is enforced against me. Due to the importance of this Agreement to the Franchisee and the Company, any claim I have against the Franchisee or the Company is separate matter and does not entitle me to violate, or justify any violation of this Agreement.
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- This Agreement shall be construed under the laws of the Commonwealth of Pennsylvania. The only way this Agreement can be changed is in writing signed by both the Franchisee and me.
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ATTACHMENT 5
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**MR.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the non-compete clause applies to individuals formerly associated with a Mr. Sandless franchise. Specifically, it restricts them from engaging in similar businesses or services related to wood floor refinishing, cleaning, and maintenance, as well as concrete cleaning and sealing, and other forms of outdoor refinishing, cleaning, and maintenance. This restriction extends to selling products that are the same as or substantially similar to those offered by Mr. Sandless.
The non-compete restrictions apply for a period of two years after the termination of the individual's position with the franchisee. This includes owning, maintaining, operating, consulting for, performing services for, or having any interest in a competing business. The restrictions are in place whether the individual acts directly or indirectly, for themselves, or through another entity.
The geographic scope of the non-compete includes the franchisee's designated territory, plus a 50-mile radius around that territory, and a 50-mile radius around any other Mr. Sandless business. There are exceptions to the non-compete. The restrictions do not apply to interests or activities performed in connection with another Mr. Sandless Franchised Business. Also, the restriction does not apply to ownership of less than 5% of the securities of any publicly held corporation.
Attachment 4 to the Mr. Sandless Franchise Agreement is a Confidentiality and Non-Competition Agreement. This agreement is specifically for trained employees, shareholders, officers, directors, general partners, members, and managers of the Franchisee. Additionally, the guarantor of the franchise agreement also agrees to be bound by all terms, conditions, restrictions, and prohibitions contained in the Franchise Agreement, including the confidentiality provisions and covenants.