Under what circumstances is a Mr. Sandless franchisee NOT in violation of the agreement for advertising outside their Designated Territory?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not permitted to solicit customers and/or advertise outside the Designated Territory, except to the extent that you have received our prior written approval to do so. Such approval to be granted or denied is at our sole discretion. We may condition our authorization upon your agreement to offer System franchisees that are operating Businesses in contiguous territories the opportunity to participate in, and share the expense of, such solicitation and/or advertising. You may not advertise your Business or any products or services offered by the Business via the Internet without our prior written consent, which may be given or withheld in our sole discretion. Notwithstanding the foregoing, we recognize that certain methods of advertising (such as radio and television) may reach a larger audience outside of your Designated Territory and, in such event and provided you have offer other System franchisees the opportunity to participate in such advertising, you will not be in violation of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from soliciting customers or advertising outside of their designated territory without prior written approval from Mr. Sandless. This approval can be granted or denied at Mr. Sandless's discretion and may be conditional upon the franchisee offering other Mr. Sandless franchisees in contiguous territories the opportunity to participate in and share the expense of the advertising.
However, the agreement recognizes an exception for certain advertising methods that may naturally extend beyond the franchisee's designated territory. Specifically, if a Mr. Sandless franchisee uses advertising methods like radio and television that reach a larger audience outside their designated territory, they will not be in violation of the agreement, provided they offer other Mr. Sandless franchisees the opportunity to participate in such advertising.
This exception acknowledges the practical limitations of controlling the reach of certain advertising mediums and aims to balance Mr. Sandless's interest in protecting territorial rights with the franchisee's ability to effectively market their business. It's important for prospective franchisees to understand these stipulations regarding advertising, as unauthorized marketing efforts can result in a fine of $500 per occurrence.