What agreement must a Mr. Sandless franchisee obtain from each manager they employ?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall require and obtain execution of covenants similar to those set forth in this Section 19.4 (including covenants applicable upon the termination of a person's employment with you) from all employees, contractors or third persons who will have access to Mr. Sandless proprietary and Confidential Information, and shall provide to us to an executed versions thereof. Such covenants shall be substantially in the form set forth in Attachment 4 as revised and updated from time to time and contained in the Manual. You shall indemnify and hold us harmless from any and all liability, loss, attorneys' fees, or damage we may suffer as a result of your failure to obtain executed restricted covenants by employees, agents and third persons as required by this Section.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 29–30)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, a franchisee must obtain covenants from all employees, contractors, or third persons who have access to Mr. Sandless's proprietary and confidential information. These covenants must be similar to those outlined in Section 19.4 of the agreement, including those applicable upon termination of employment.
The specific form for these covenants is detailed in Attachment 4 of the FDD, which is referred to as the Confidentiality and Non-Competition Agreement, and may be revised and updated from time to time and contained in the Manual. The franchisee is obligated to provide executed versions of these agreements to Mr. Sandless.
Failure to obtain these executed restricted covenants can result in the franchisee being liable to indemnify and hold Mr. Sandless harmless from any liability, loss, attorneys' fees, or damages suffered as a result of not securing these agreements. This requirement ensures that confidential information is protected and that all individuals with access to it are bound by the same restrictions, safeguarding Mr. Sandless's business interests and trade secrets.