Does the restriction on competitive businesses after the Mr. Sandless agreement terminates apply regardless of the reason for termination?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
18.2 After the Term of This Agreement
18.2.1 For a period of two (2) years after the expiration (provided you have not entered into a successor franchise agreement), transfer or termination of this Agreement, regardless of the cause, neither you, your principals, nor any member of the immediate family of you or your principals may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation participate in any Competitive Business which includes sanding, dustless refinishing, screening and recoats, sandless refinishing, wood polishing, wood floor care, wood floor cleaning, floor maintenance, floor care, floor refinishing, and floor cleaning for tile, VCT, terrazzo, marmoleum, linoleum, vinyl, asphalt, rubber, laminates, concrete, slate, brick, stone, granite, grout sealing and coloring, ceramic floors, and cabinet refinishing, and exterior wood refinishing or any other services and/or products similar to those offered under the System.
18.2.2 For a period of two (2) years after the expiration, transfer or termination of this Agreement, regardless of the cause, neither you, your principals, nor any member of the immediate family of you or your principals may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation:
(i) Own, maintain, engage in, be employed by, or have any interest in any Competitive Business which includes sanding, dustless refinishing, screening and recoats, sandless refinishing, wood polishing, wood floor care, wood floor cleaning, floor maintenance, floor care, floor refinishing, and floor cleaning for tile, VCT, terrazzo, marmoleum, linoleum, vinyl, asphalt, rubber, laminates, concrete, slate, brick, stone, granite, grout sealing and coloring, ceramic floors, and cabinet refinishing, and exterior wood refinishing or any other services and/or products similar to those offered under the System within the Designated Territory; or within a radius of fifty (50) miles of any Mr.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the restrictions on engaging in competitive businesses after the franchise agreement terminates apply regardless of the reason for termination. Specifically, for a period of two years after the expiration, transfer, or termination of the agreement, the franchisee, their principals, or immediate family members are restricted from participating in any competitive business. This restriction applies whether the termination is due to expiration, transfer, or any other cause.
This non-compete clause prevents former Mr. Sandless franchisees from leveraging the knowledge and experience gained during their franchise term to directly compete with the brand. The restrictions include involvement in businesses offering services similar to those provided by Mr. Sandless, such as sanding, dustless refinishing, wood polishing, floor care, and cleaning services for various floor types.
The restrictions extend to owning, maintaining, or being employed by a competitive business within the Designated Territory or within a 50-mile radius of any operating Mr. Sandless Business. This geographical limitation is designed to protect existing franchisees and the overall Mr. Sandless brand from direct competition by former franchisees in the same market areas. Prospective franchisees should carefully consider these post-termination restrictions and how they might impact their future business endeavors after leaving the Mr. Sandless system.