Under the Mr. Sandless franchise agreement, which section covers site selection and acquisition/lease obligations?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
2. TERRITORY AND LOCATION
2.1 Designated Territory
You shall operate your Business only within the designated territory identified, or (if the parties have not agreed upon a territory at the time this Agreement is signed) to be identified, in the Data Sheet (the "Designated Territory"). The size and configuration of your Designated Territory is defined in terms of contiguous zip codes and/or by a map attached to this Agreement as Attachment 2. This Agreement grants you the right to operate the Franchised Business within the Territory only. You acknowledges that (i) the Designated Territory was mutually agreed upon by you and us, (ii) prior to the Effective Date hereof, you conducted your own due diligence with regard to potential customers and other matters relative to the operation of the Franchised Business in the Designated Territory, and (iii) our agreement to the Designated Territory is permission only, does not constitute a representation, promise, warranty, or guarantee, express or implied, by us that the Franchised Business operated therein will be profitable or otherwise successful, and cannot, and does not, create any liability for us. You may not offer or sell any products or services offered by the Business to customers located outside of the Designated Territory. However, you may offer or sell products or services to customers located outside of and adjacent to your Designated Territory if the customer is located in an area that is not serviced by another System franchisee, and you have received prior written approval from us, which approval may be granted or denied at our sole discretion.
During the term of this Agreement, so long as you are in substantial compliance with the terms and conditions of this Agreement, we will not establish or locate, or grant any third party the right to establish or locate, another Mr. Sandless Business using the System and Proprietary Marks within the Designated Territory, except as set forth in Section 2.2 below. This Agreement does not grant you any other territorial rights. Notwithstanding the foregoing, if you meet our qualifications, you may purchase one or more additional territories of approximately 100,000 population each, not to exceed a total of four (4) territories under this Agreement. You shall pay an additional territory fee of Five Thousand Dollars (\
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 18–19)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, Section 2 of the Franchise Agreement, titled "Territory and Location," addresses the designated territory for the franchise. Specifically, Section 2.1, "Designated Territory," outlines that a franchisee must operate their Mr. Sandless business within a territory identified in the Data Sheet attached to the agreement. This section specifies that the territory's size and configuration are defined by contiguous zip codes or a map included as Attachment 2 to the agreement.
This section of the Mr. Sandless Franchise Agreement grants the franchisee the right to operate within the designated territory. It also clarifies that the agreement on the designated territory is a mutual agreement and that the franchisee has conducted their own due diligence. Mr. Sandless makes no guarantees that the business will be profitable or successful in the designated territory. The franchisee is restricted from offering or selling products or services to customers outside of their designated territory, unless the customer is in an unserviced area and prior written approval is obtained from Mr. Sandless.
Furthermore, as long as the franchisee is in substantial compliance with the agreement, Mr. Sandless will not establish or grant another franchise the right to operate within the franchisee's designated territory. The agreement allows franchisees to purchase additional territories, each with a population of approximately 100,000, up to a total of four territories, for an additional fee of $5,000 per territory. This section does not explicitly detail site selection or acquisition/lease obligations, but it does define the geographical boundaries within which the Mr. Sandless business must operate, which indirectly influences site selection.