Under what conditions can a Mr. Sandless franchisee enter into a Successor Franchise Agreement?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
. We reserve the right to require you to locate any new site for your Business within your Designated Territory.
3. TERM AND SUCCESSOR OPTIONS
3.1 Term
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.
3.2 Successor Options
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;
- 3.2.8 You pay a successor agreement fee to us in the amount of (a) One Thousand Dollars ($1,000), if the Successor Franchise Agreement relates to a Mr. Sandless Business per business owned (the "Successor Agreement Fee").
- 3.2.9 You satisfy our then-current training
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, a franchisee has the right to enter into a Successor Franchise Agreement at the end of the initial term, provided they meet specific conditions. The initial term of the franchise agreement is ten years from the effective date. To qualify for a Successor Franchise Agreement, the franchisee must be in compliance with all terms and conditions of the current agreement at the time of the request and must have substantially complied with Mr. Sandless's operating standards throughout the initial term.
Furthermore, the franchisee must have satisfied all monetary obligations to Mr. Sandless and its affiliates and be in compliance with all other agreements between them. The franchisee must provide written notice of their intention to renew the Franchise Agreement at least 90 days, but not more than 180 days, before the current term expires. They must also have the right to remain in possession of the business premises or secure another location acceptable to Mr. Sandless for the successor term.
Additionally, at Mr. Sandless's request, the franchisee must update services, equipment, service vehicles, or the business system to reflect the then-current image of Mr. Sandless Businesses, at the franchisee's expense. The franchisee must execute Mr. Sandless's current form of franchise agreement, which may have materially different terms, including higher royalty and advertising fees. The franchisee must also pay a Successor Agreement Fee of $1,000 per business owned and satisfy the then-current training requirements for continuing franchisees at their own expense. Finally, the franchisee must sign a general release in favor of Mr. Sandless and its affiliates for all claims related to the agreement.