After termination, can a former Mr. Sandless franchisee be employed by a Competitive Business?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
with the Franchise and for a continuous uninterrupted period commencing upon the cessation or termination
of my position with Franchisee, regardless of the cause for termination, and continuing for two (2) years thereafter, either directly or indirectly, for myself, or through, on behalf of, or in conjunction with any person, persons, partnership, or corporation, own, maintain, operate, engage in, act as a consultant for, perform services for, or have any interest in any business offering wood floor refinishing, wood free care, wood floor cleaning, and floor maintenance, outdoor wood refinishing, wood care, wood cleaning, wood maintenance, concrete cleaning and sealing, and other forms of outdoor refinishing, cleaning and maintenance, or any selling any product or products which are the same as, or substantially similar to, any of the products or services offered by a Mr. Sandless Business, except at a Mr. Sandless Business, which is or is intended to be, located within:
- 7.1 the Franchisee's Designated Territory as defined in the Franchise Agreement;
- 7.2 Fifty (50) miles of Franchisee's Designated Territory; or
- 7.3 Fifty (50) miles of any Business operating under the System and the Proprietary Marks.
The prohibitions in this Paragraph 7 do not apply to my interests in or activities performed in connection with a Franchised Business. This restriction does not apply to my ownership of less than a five percent (5%) beneficial interest in the outstanding securities of any publicly held corporation.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, a former franchisee is restricted from engaging in or being involved with a Competitive Business for a period of two years after the termination of their franchise agreement. This restriction applies regardless of the reason for termination.
The definition of a Competitive Business includes owning, maintaining, operating, consulting for, performing services for, or having any interest in businesses that offer wood floor refinishing, wood-free care, wood floor cleaning, floor maintenance, outdoor wood refinishing, wood care, wood cleaning, wood maintenance, concrete cleaning and sealing, and other forms of outdoor refinishing, cleaning and maintenance. It also includes businesses selling products that are the same as or substantially similar to those offered by a Mr. Sandless Business.
This restriction applies within the franchisee's Designated Territory, fifty miles of the Designated Territory, and fifty miles of any Business operating under the Mr. Sandless system. The restrictions do not apply to interests or activities connected with a Franchised Mr. Sandless Business or ownership of less than 5% of a publicly held corporation. This non-compete clause is designed to protect Mr. Sandless's market share and proprietary business methods by preventing former franchisees from using their knowledge gained from the franchise to compete against the system within a specific geographic area for a limited time.