Under what conditions can the Mr. Sandless franchise agreement be modified?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
At the end of the initial term, you have the right to enter into a new franchise agreement and other agreements and legal instruments and documents customarily employed by us and in the form then generally being offered to prospective franchisees in the state in which your Business is located (the "Successor Franchise Agreement"), if you meet the following conditions:
- 3.2.1 You are in compliance with all the terms and conditions of this Agreement at the time you request to enter into a Successor Franchise Agreement and have substantially complied with the operating standards and criteria established by us throughout the initial term and any successor term;
- 3.2.2 You have satisfied all monetary obligations owed to us and our affiliates;
- 3.2.3 You are in compliance with all other agreements between you and us and/or our affiliates;
- 3.2.4 You have provided us with written notice of your intention to renew the Franchise Agreement at least ninety (90) days but not more than one hundred eighty (180) days prior to expiration of the then current term;
- 3.2.5 You have the right to remain in possession of the Business premises, or you have secured other premises acceptable to us for the successor term;
- 3.2.6 At our request, you effectuate, at your expense, any changes in services, equipment, service vehicles, items offered or business system so as to reflect our then-current image, including, but not limited to, interior and exterior design or offerings of Mr. Sandless Businesses;
- 3.2.7 You execute our then-current form of franchise agreement ("Successor Franchise Agreement"), which may vary materially from the terms of this Agreement and may include, without
limitation, higher royalty and advertising fees. The Successor Franchise Agreement, when executed, will supersede this Agreement in all respects;
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the franchise agreement can be modified under specific conditions related to renewal. At the end of the initial 10-year term, a franchisee has the option to enter into a new franchise agreement, referred to as the "Successor Franchise Agreement." However, this is contingent upon meeting several conditions.
To qualify for a Successor Franchise Agreement, the franchisee must be in full compliance with the existing agreement's terms and conditions at the time of the renewal request. This includes substantial adherence to Mr. Sandless's operating standards and criteria throughout the initial term. All monetary obligations to Mr. Sandless and its affiliates must be satisfied, and the franchisee must be in compliance with all other agreements with the company. The franchisee must provide written notice of their intent to renew at least 90 days, but no more than 180 days, before the current term expires.
Additionally, the franchisee must maintain possession of the business premises or secure an alternative location acceptable to Mr. Sandless for the successor term. Mr. Sandless may also require the franchisee to update services, equipment, vehicles, or the business system to reflect the brand's current image, at the franchisee's expense. Critically, the franchisee must execute Mr. Sandless's then-current form of franchise agreement, which may differ significantly from the original agreement. This new agreement could include higher royalty and advertising fees, and it will supersede the original agreement in all respects.