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How do the restrictions on suppliers for Mr. Sandless (Item 8) relate to the franchisee's obligations regarding approved products (Item 9)?

Mr_Sandless Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 16: RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL]

You must offer the services and products we specify and/or approve. You may not sell any goods or provide any services that we have not previously approved or required for a Mr. Sandless Business. We may change the products and services which your Business must offer, there is no contractual limitation on our right to change the types of authorized goods and services that you must offer, and we anticipate that the types of goods and services offered by System franchisees may also be modified, among other ways, in accordance with industry changes. You must comply with any changes we require in the products and services that your Business will offer and sell. You will conduct the Business in accordance with our specifications and procedures, and otherwise comply with the requirements in the Operations Manual. You may not conduct another business in conjunction with the Business without our prior written approval, which we are not required to provide.

You are restricted by the Franchise Agreement, Operations Manual and any other practice or custom with respect to the goods or services which you may offer, which must be approved by us. You are not restricted as to the customers whom you may solicit or service except as described in Item 12.

[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]

ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES

Approved Products, Equipment, Supplies and Suppliers

We have the right to establish designated and approved suppliers for products and services offered in connection with the Business. When establishing the Business, you must purchase or lease products, including supplies, branded clothing, inventory items and equipment, from designated or approved suppliers, which may include us, and you must enter into service agreements with approved vendors, as directed by us. We may be an approved supplier, but not the only approved supplier, of equipment, tools, inventory, job tins, and uniforms, but you are not required to purchase these items from us. We are currently the only approved supplier for the Franchise Starter Kit, invoices and after care packs. All supplies ordered through us are subject to a 10% administrative fee over our cost.

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.

9..8.4 If you use unapproved products, solutions or supplies on a customer job, you will be fined Two Thousand Five Hundred Dollars ($2,500) per day of your use and risk termination of your franchised business.

What This Means (2025 FDD)

According to Mr. Sandless's 2025 Franchise Disclosure Document, Item 8 outlines restrictions on approved suppliers, while Item 16 details the franchisee's obligation to offer only specified and/or approved services and products. Mr. Sandless franchisees must purchase or lease products, including supplies, branded clothing, inventory items, and equipment, from designated or approved suppliers, which may include Mr. Sandless itself. Franchisees must also enter into service agreements with approved vendors as directed by Mr. Sandless.

Mr. Sandless may be an approved supplier, but not necessarily the only one, for equipment, tools, inventory, job tins, and uniforms. However, Mr. Sandless 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. This means franchisees are obligated to use specific suppliers for certain items and can only offer products and services approved by Mr. Sandless.

If a franchisee wishes to use a new item or supplier, they must submit a written request to Mr. Sandless with all necessary information for evaluation. Mr. Sandless has 15 days to approve or disapprove the request. The franchisee must reimburse Mr. Sandless for evaluation costs, up to $500. Mr. Sandless can revoke approval of any item or supplier if they no longer meet the company's criteria or serve the franchise network's needs. If a Mr. Sandless franchisee uses unapproved products, solutions, or supplies on a customer job, they will be fined $2,500 per day and risk termination of their franchise agreement. This underscores the importance of adhering to the approved supplier and product guidelines to avoid penalties and maintain compliance with the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.