Under what conditions does Mr. Sandless have the right to discontinue services to a franchisee?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are in breach of any obligation under this Agreement, and we deliver to you a notice of termination pursuant to this Article 22, we have the right to suspend our performance of any of our obligations under this Agreement including, without limitation, the sale or supply of any services or products for which we are an approved supplier to you and/or suspension of your web page on our Website, until such time as you correct the breach.
Notwithstanding anything to the contrary contained in this Article, if any valid, applicable law or regulation of a competent governmental authority having jurisdiction over this franchise and the parties hereto shall limit our rights of termination under this Agreement or shall require longer notice periods than those set forth above, this Agreement is deemed amended to satisfy the minimum notice periods or restrictions upon such termination required by such laws and regulations; provided, however, that such constructive amendment shall not be deemed a concession by us that the grounds for termination set forth in this Agreement do not constitute "good cause" for termination within the meaning ascribed to that term
by any applicable law or regulation. We shall not be precluded from contesting the validity, enforceability or application of such laws or regulations in any action, hearing or proceeding relating to this Agreement or the termination of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, Mr. Sandless has the right to suspend services to a franchisee if the franchisee is in breach of any obligation under the Franchise Agreement. This includes the right to suspend performance of any obligations, such as the sale or supply of services or products for which Mr. Sandless is an approved supplier. Mr. Sandless can also suspend the franchisee's web page on the Mr. Sandless website.
This suspension of services remains in effect until the franchisee corrects the breach. The FDD also states that if any applicable law or regulation limits Mr. Sandless's rights of termination or requires longer notice periods than those in the agreement, the agreement is deemed amended to satisfy those minimum requirements. However, this amendment does not mean Mr. Sandless concedes that the grounds for termination in the agreement do not constitute "good cause" for termination under any applicable law or regulation.
For a prospective franchisee, this means that maintaining compliance with all aspects of the franchise agreement is crucial to avoid any disruption in the services and supplies provided by Mr. Sandless. It also highlights the importance of understanding both the franchise agreement and any local laws that may affect the termination or suspension of the agreement. Franchisees should be aware that even if local laws provide additional protections, Mr. Sandless retains the right to contest the applicability of those laws.