What agreement must be provided to Mr. Sandless before a transfer can be approved?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
onmonetary obligations under this Agreement and any other agreement between you and us or our affiliates;
21.3.2 The buyer having met our qualifications for new franchisees;
- 21.3.3 The buyer's upgrade of the Business to conform with our then-current specifications;
- 21.3.4 We are provided with an executed agreement of sale between you and the buyer;
- 21.3.5 The buyer's successful completion of our training program as stated in Section 4.1;
- 21.3.6 The buyer's receipt of your last year's business tax return and other documents relevant to your Business;
- 21.3.7 Your execution (or your principals' execution, as applicable) of a general release, in a form prescribed by us, of all claims against us and our officers, directors, agents, and employees. Notwithstanding such release, you shall remain obligated under those provisions of this Agreement that expressly extend beyond the term hereof;
- 21.3.8 The buyer's execution of our then-current Single Unit Franchise Agreement as well as execution of a personal guaranty if a partnership, corporation or limited liability company;
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, before a franchise transfer can be approved, the buyer must execute Mr. Sandless's then-current Single Unit Franchise Agreement. If the buyer is a partnership, corporation, or limited liability company, they must also execute a personal guaranty.
In addition to the agreements, the transferring franchisee (or their principals) must execute a general release in a form prescribed by Mr. Sandless, which releases all claims against Mr. Sandless and its officers, directors, agents, and employees. The corporation or limited liability company must agree in writing to assume all of the franchisee's obligations.
These requirements ensure that the new franchisee is legally bound to the terms of the franchise agreement and that Mr. Sandless is protected from potential liabilities. The personal guaranty provides an additional layer of security for Mr. Sandless if the franchisee is a business entity.