Does the Mr. Sandless agreement require a written document signed by both the franchisee and me to make changes?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
- 21.6.8 No changes to the corporation or limited liability company's governing documents may be made without our express written consent;
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, if a franchisee operates as a corporation or limited liability company, changes to the company's governing documents require express written consent from Mr. Sandless. Specifically, section 21.6.8 states that no changes to the corporation or limited liability company's governing documents may be made without Mr. Sandless's express written consent.
This requirement ensures that Mr. Sandless maintains control over the structure and operation of franchisee entities. It prevents franchisees from unilaterally altering key aspects of their business operations that could impact the Mr. Sandless brand or system.
For a prospective Mr. Sandless franchisee, this means that if they choose to operate their franchise through a corporation or LLC, they must obtain written approval from Mr. Sandless before making any changes to the company's articles of incorporation, bylaws, operating agreement, or other governing documents. This could include changes to ownership, management structure, or the scope of business activities. Failure to obtain this consent could be a breach of the franchise agreement.
It is important for prospective franchisees to carefully review the franchise agreement and related documents to understand the full scope of these restrictions and obligations. They should also consult with legal and financial advisors to assess the implications of these requirements for their specific circumstances.