Is the buyer required to complete the Mr. Sandless training program before the transfer is approved?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of your death, disability or incapacity (or the death, disability or incapacitation of your principals or personal guarantors if you are a partnership, corporation or limited liability company), your legal representative (or your principal's or guarantor's respective legal representative, as applicable) shall have the right to continue the operation of the Business under this Agreement, without payment of a transfer fee, if: (i) within ninety (90) days from the date of death, disability or incapacity (the "90 Day Period"), such person has obtained our prior written approval; and (ii) such person successfully completes our training programs (which we will provide at our then-current tuition rate). Such assignment by operation of law will not be deemed in violation of this Agreement, provided such heirs or legatees accept the conditions imposed by this Agreement and are acceptable to us. If our requirements have not been met within the 90 Day Period, we have the right to step in and manage the Business, as described in Article 29, or we may terminate this Agreement.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, in the event of death, disability, or incapacitation of the franchisee (or their principals/guarantors), the legal representative has the right to continue operating the business without paying a transfer fee. However, this is contingent upon obtaining Mr. Sandless's prior written approval within 90 days and successfully completing their training programs at the then-current tuition rate.
This condition ensures that the business continues to operate under the Mr. Sandless standards and procedures, even when the original franchisee is no longer able to manage it. The requirement to complete the training program is a way for Mr. Sandless to maintain consistency and quality across all franchise locations, regardless of changes in ownership due to unforeseen circumstances.
If these requirements are not met within the 90-day period, Mr. Sandless reserves the right to step in and manage the business or terminate the agreement. This clause highlights the importance of having a succession plan in place and ensuring that legal representatives are aware of the steps needed to continue operating the Mr. Sandless franchise.