In the case of a Mr. Sandless franchisee that is a partnership, who must have read and approved the agreement?

According to the 2025 Mr. Sandless Franchise Disclosure Document, if the franchisee is a corporation or limited liability company, specific requirements must be met. One of these requirements is that all shareholders of the corporation, or all members and managers of the limited liability company, must sign Mr. Sandless' Guaranty Agreement. By signing this agreement, they personally agree to be bound by the terms of the Franchise Agreement. They also guarantee the performance of all of the franchisee's obligations under the agreement.

This stipulation ensures that individuals with a significant stake in the franchisee entity are personally liable for upholding the franchise agreement. This is a common practice in franchising to prevent individuals from shielding themselves behind a corporate entity to avoid responsibility. It also aligns the interests of the franchisor and the individuals controlling the franchisee entity, as they are all bound by the same terms and conditions.

For a prospective Mr. Sandless franchisee, this means that if you plan to operate your franchise through a corporation or LLC, you must ensure that all shareholders, members, and managers are willing to sign the Guaranty Agreement. This requirement could impact your choice of business structure and the individuals you involve in your franchise venture. It is essential to discuss this requirement with your legal and financial advisors to fully understand the implications and ensure compliance with the franchise agreement.