Besides liquidated damages, what other payments are Mr. Sandless franchisees responsible for upon termination of the agreement?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement, you shall:
23.1.1 Promptly pay to us any sums due and owing, and to other persons or entities sums which may result in a claim of liability to us;
23.1.2 Immediately cease using the Proprietary Marks, Copyrights and Confidential Information and refrain from referencing any past association with us;
23.1.3 Immediately discontinue all advertising under the names "Mr.
Sandless" or any similar name, and (iii) de-identify the service vehicle(s) and any office location;
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, franchisees are obligated to promptly pay any sums due and owing to Mr. Sandless. This includes any amounts that may result in a claim of liability to Mr. Sandless. Franchisees must also cease using Mr. Sandless's Proprietary Marks, Copyrights, and Confidential Information, and refrain from referencing any past association with Mr. Sandless.
Additionally, franchisees must immediately discontinue all advertising under the names "Mr. Sandless" or any similar name. They are also required to de-identify any service vehicles and office locations to remove any association with the Mr. Sandless brand. This ensures that the franchisee no longer represents or benefits from the brand's reputation after the agreement ends.
These obligations are typical in franchise agreements to protect the franchisor's brand and ensure a clean break when a franchise relationship ends. Franchisees should be aware of these financial and operational requirements upon termination to avoid potential legal or financial repercussions.