What rights are granted to qualified individuals who are awarded a Mr. Sandless franchise?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
We offer franchises to qualified individuals for the right to use the System and Proprietary Marks within designated territories (the "Business").
We hereby grant to you, and you hereby accept, a nonexclusive franchise to establish and operate one (1) Franchised Business pursuant to the terms of this Agreement. This Agreement does not give you the right to establish additional Franchised Businesses.
You shall operate your Business only within the designated territory identified, or (if the parties have not agreed upon a territory at the time this Agreement is signed) to be identified, in the Data Sheet (the "Designated Territory"). The size and configuration of your Designated Territory is defined in terms of contiguous zip codes and/or by a map attached to this Agreement as Attachment 2. This Agreement grants you the right to operate the Franchised Business within the Territory only.
We retain the right to establish, or to grant others the right to establish, Mr. Sandless Businesses outside the Designated Territory. You acknowledge and agree that certain of our or our affiliates' products, whether now existing or developed in the future and whether or not designated as "proprietary products", may be distributed in the Designated Territory by us, our affiliates, our franchisees, licensees or designees, in such manner and through such channels of distribution as we, in our sole discretion, shall determine. Such alternative channels of distribution shall include, but are not limited to, sales of any products offered hereunder or other products using the Proprietary Marks or using other marks or private labeling at or through home improvement stores, home shows, the internet (including orders via our Website), mail order or other distributions methods or supply chains. We reserve the right, among others, as to any distribution arrangements relating thereto. You understand that this Agreement grants you no rights: (i) to distribute such products via alternative channels of distribution as described in this section; or (ii) to share in any of the proceeds received by any party from such sales via alternative channels of distribution. We will not sell the Mr. Sandless services in a "do it yourself" kit by any means which bypasses the franchise System.
Notwithstanding the foregoing, if you meet our qualifications, you may purchase one or more additional territories of approximately 100,000 population each, not to exceed a total of four (4) territories under this Agreement. You shall pay an additional territory fee of Five Thousand Dollars ($5,000.00) for each additional territory purchased. Upon such additional purchase, we will amend Attachment 2.
The initial term of this franchise shall begin on the Effective Date set forth on the Data Sheet by us and shall expire at midnight on the tenth (10th) anniversary of the Effective Date.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, qualified individuals are granted a nonexclusive franchise to establish and operate one Mr. Sandless Business, as detailed in the franchise agreement. This franchise allows the use of the Mr. Sandless system and proprietary marks within a designated territory. The franchisee's territory is defined by contiguous zip codes or a map attached to the agreement. Franchisees have the right to operate their Mr. Sandless business within this territory.
Mr. Sandless franchisees do not receive exclusive territorial rights. Mr. Sandless retains the right to establish other Mr. Sandless Businesses outside the franchisee's designated territory, and can also distribute products through alternative channels such as home improvement stores, the internet, and mail order. The franchisee has no rights to these alternative distribution channels or any proceeds from them. However, Mr. Sandless will not sell 'do it yourself' kits that bypass the franchise system.
Mr. Sandless franchisees also have the option to purchase additional territories, each with a population of approximately 100,000, up to a maximum of four territories under the agreement. Each additional territory requires a fee of $5,000. The initial term of the franchise agreement is ten years from the effective date. Franchisees in good standing have the option to enter into a new franchise agreement at the end of the initial term, provided they meet certain conditions, including compliance with the existing agreement and satisfaction of all monetary obligations.