Does Mr. Sandless retain the right to establish Businesses under the Mr. Sandless trademarks outside of a franchisee's Designated Territory?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
be terminated if you do not achieve the performance criteria or if you otherwise breach the terms of the Franchise Agreement.
If you are in compliance with your Franchise Agreement, we will not establish and operate or license anyone else to establish or operate another Business under the Mr. Sandless trademarks within your Designated Territory(ies). We retain the right to establish, or to grant to others the right to establish, Businesses under the the Mr. Sandless trademarks outside of your Designated Territory(ies) and on any terms that we deem advisable. We will not offer you a right of first refusal to purchase from us other business opportunities we offer under other brands and trademarks, and we have the right to sell business opportunities under other brands and trademarks, to others in your Designated Territory(ies).
We also have the right to distribute products (including proprietary products) using the Proprietary Marks or using other marks or private labeling both inside and outside your Designated Territory(ies) in the manner and through alternative channels of distribution as we determine in our sole discretion, and without compensation to you. These alternative channels of distribution may include home improvement stores, home shows, the internet (including orders via our Website), mail order or other distribution methods or supply chains. We have the sole right as to any distribution arrangements relating to these alternative channels or distribution. We are not required to pay you any compensation for soliciting or accepting orders from inside your Designated Territory(ies) through these alternative channels of distribution.
You have no right: (i) to distribute products through these alternative channels of distribution; or (ii) to share in the distribution proceeds received by any party. Except as described above, we and/or our affiliates may not establish other franchises or company owned units selling similar products or services under a different trademark in your Designated Territory. We will not sell the Mr. Sandless services in a "do it yourself" kit by any means which bypasses the franchise System.
Regional Accounts
We have the exclusive right to negotiate and enter into agreements or approve forms of agreements to provide services to any business which owns, manages, controls or otherwise has responsibility for buildings or commonservices in more than 5 locations and whose presence is not confined within any one franchisee's designated territory(ies) (a "Regional Account"). After we sign a contract with a Regional Account, we may, at our option, provide you the opportunity to perform the services under the Regional Account contract and for the prices we negotiated with the Regional Account.
Source: Item 12 — TERRITORY (FDD pages 25–26)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, Mr. Sandless retains the right to establish or license others to establish businesses under the Mr. Sandless trademarks outside a franchisee's designated territory. These businesses can be established on terms that Mr. Sandless deems advisable. This means that while franchisees are granted a designated territory, Mr. Sandless is not restricted from expanding its brand presence beyond those territories, potentially impacting market reach and brand recognition.
This also extends to distribution of products. Mr. Sandless retains the right to distribute products, including proprietary products, using the Mr. Sandless trademarks or other marks, both inside and outside a franchisee's designated territory. These products can be distributed through various channels such as home improvement stores, home shows, the internet, and mail order, without any compensation to the franchisee. This could create competition for franchisees within their own territories, as customers may have alternative avenues to purchase Mr. Sandless products or services.
Furthermore, Mr. Sandless has the exclusive right to negotiate and enter into agreements with Regional Accounts, defined as businesses with more than 5 locations not confined to a single franchisee's territory. After securing a Regional Account, Mr. Sandless may offer the franchisee the opportunity to service the account at the negotiated prices. However, if the franchisee declines or the Regional Account is unsatisfied, Mr. Sandless can provide the services directly, through an affiliate, another franchisee, or a third party, even if the job site is within the franchisee's designated territory, without compensating the original franchisee. This highlights the franchisor's control over large accounts and the potential for franchisees to miss out on significant revenue opportunities within their own territory.