Does Mr. Sandless' approval of a transfer constitute a waiver of any claims against the franchisee?
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 exp
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the franchisee is required to execute a general release, in a form prescribed by Mr. Sandless, of all claims against Mr. Sandless and its officers, directors, agents, and employees as a condition of transfer. However, this release does not absolve the franchisee of obligations that extend beyond the agreement's term.
Specifically, Item 22 outlines several conditions that must be met for a transfer to be approved. These include the buyer's execution of Mr. Sandless' current Single Unit Franchise Agreement and a personal guaranty if the buyer is a partnership, corporation, or limited liability company. Additionally, the franchisee must pay a transfer fee of either $5,000 per owner for a Mr. Sandless Business transfer or $1,000 per owner, depending on the specific circumstances of the transfer.
In summary, while Mr. Sandless requires a general release to protect itself from potential claims during a transfer, this does not waive the franchisee's responsibilities for obligations that persist beyond the termination of the franchise agreement. The transfer process involves several steps and fees, ensuring that both parties are protected and that the new franchisee is fully committed to the Mr. Sandless system.