Who bears the expense of destroying or surrendering materials containing Proprietary Marks after termination of the Mr. Sandless franchise agreement?

According to Mr. Sandless's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, the franchisee is responsible for the expense of destroying or surrendering materials containing the company's proprietary marks. This includes items like signs, stationery, letterhead, forms, and other printed materials that display the Mr. Sandless brand or similar names and marks.

This requirement ensures that after the franchise agreement ends, the franchisee does not continue to represent themselves as being affiliated with Mr. Sandless. It protects the integrity and uniformity of the brand by preventing unauthorized use of its trademarks and proprietary materials. The franchisee must bear the costs associated with removing these materials from their possession, either by destroying them or returning them to the franchisor.

For a prospective Mr. Sandless franchisee, this means that when exiting the franchise system, they need to budget for the costs of removing all branding elements from their business. This could involve physical removal and disposal of signage, reprinting of marketing materials, and potentially shipping items back to Mr. Sandless if required. Failing to comply with this requirement could lead to legal repercussions and further expenses.

This is a fairly standard clause in most franchise agreements. It is crucial for franchisees to understand their obligations upon termination to avoid any disputes or additional costs. Franchisees should factor in these potential expenses when considering the overall financial implications of the franchise.