Does Mr. Sandless's review or acceptance of a site guarantee the franchisee's success?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledges that (i) the Designated Territory was mutually agreed upon by you and us, (ii) prior to the Effective Date hereof, you conducted your own due diligence with regard to potential customers and other matters relative to the operation of the Franchised Business in the Designated Territory, and (iii) our agreement to the Designated Territory is permission only, does not constitute a representation, promise, warranty, or guarantee, express or implied, by us that the Franchised Business operated therein will be profitable or otherwise successful, and cannot, and does not, create any liability for us.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the franchisor's agreement to a designated territory for a franchisee does not guarantee the success of the franchise. The FDD states that the agreement to the designated territory is "permission only" and does not constitute a "representation, promise, warranty, or guarantee, express or implied, by us that the Franchised Business operated therein will be profitable or otherwise successful, and cannot, and does not, create any liability for us."
This means that while Mr. Sandless may approve a territory, the franchisee is ultimately responsible for conducting their own due diligence to determine the viability of the location. Factors such as potential customers and market conditions are the franchisee's responsibility to assess. The franchisor's approval is simply permission to operate in that area, not an assurance of profitability.
This is a common practice in franchising, as franchisors typically provide guidance and support but cannot guarantee success due to various factors outside their control, such as the franchisee's management skills, local market conditions, and competition. Prospective Mr. Sandless franchisees should carefully research their chosen territory and develop a solid business plan to maximize their chances of success.