What are the conditions for Mr. Sandless franchisor approval of a transfer by a franchisee?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY | |
|---|---|---|---|
| l. | Franchisor approval of transfer by franchisee | 21.3 | You may not transfer any of your rights or obligations under the Franchise Agreement without having first received our written approval. |
| m. | Conditions for franchisor approval of transfer | 21.3 | Conditions include: you must have met all of your monetary and non-monetary obligations to us and our affiliates; buyer qualifies; buyer upgrades the Business to conform with our then-current requirements; you provide us with a copy of the signed agreement of sale; the buyer satisfactorily completes all required training; you provide the buyer with required documents related to your Business; you sign release; buyer signs Franchise Agreement and required guaranties; payment to us of the required transfer fee; buyer obtains required permits and licenses; transfer is made in compliance with all applicable laws; purchase price and terms are not overly burdensome on the buyer; we have provided the buyer with our then-current disclosure document |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to Mr. Sandless' 2025 Franchise Disclosure Document, a franchisee needs written approval from Mr. Sandless to transfer any rights or obligations under the Franchise Agreement.
The conditions for Mr. Sandless' approval include several requirements. The franchisee must have fulfilled all monetary and non-monetary obligations to Mr. Sandless and its affiliates. The buyer must meet Mr. Sandless' qualifications and upgrade the business to meet the current standards. The franchisee must provide Mr. Sandless with a copy of the signed sales agreement and ensure the buyer completes the required training.
Additionally, the franchisee must provide the buyer with necessary business documents and sign a release. The buyer must sign the Franchise Agreement and any required guarantees. The required transfer fee must be paid to Mr. Sandless. The buyer needs to obtain all necessary permits and licenses, and the transfer must comply with all applicable laws. The purchase price and terms should not be overly burdensome for the buyer, and Mr. Sandless must provide the buyer with the most recent disclosure document.