What agreements must a Designated Manager and Technical Manager sign before assuming their responsibilities at a Mr. Sandless franchise?

Based on the 2025 Mr. Sandless Franchise Disclosure Document, if a franchisee is a corporation or limited liability company, all shareholders, members, and managers must sign a Guaranty Agreement. This agreement legally binds them to the terms of the Franchise Agreement and guarantees the performance of the franchisee's obligations. This requirement ensures that individuals behind the corporate entity are personally responsible for upholding the franchise's standards and financial commitments.

This stipulation is crucial for Mr. Sandless because it maintains accountability beyond the business structure. By requiring personal guarantees, Mr. Sandless aims to prevent franchisees from shielding themselves behind a corporation or LLC to avoid responsibility for breaches of contract or financial shortfalls. This measure protects the franchisor's interests and ensures that those managing the franchise have a vested interest in its success.

However, the FDD does not explicitly state whether a Designated Manager and Technical Manager, specifically, must sign any agreements before assuming their responsibilities if they are not shareholders, members, or managers of a corporate or LLC franchisee. A prospective franchisee should seek clarification from Mr. Sandless regarding any required agreements for these roles to fully understand the obligations and liabilities of individuals managing the franchise operations.