Does the Confidentiality and Non-Competition Agreement apply to officers and directors of the Mr. Sandless franchisee?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
ATTACHMENT 4
TO
MR. SANDLESS FRANCHISE LLC SINGLE UNIT FRANCHISE AGREEMENT
CONFIDENTIALITY AND NON-COMPETITION AGREEMENT
(For trained employees, shareholders, officers, directors, general partners, members and managers of Franchisee)
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless FDD, the Confidentiality and Non-Competition Agreement does apply to officers and directors of the franchisee. The agreement is specifically designed to include trained employees, shareholders, officers, directors, general partners, members, and managers of the Mr. Sandless franchisee. This measure ensures that individuals with access to confidential information and influence within the franchise are bound by the non-competition terms.
This requirement means that if you are considering becoming an officer or director of a Mr. Sandless franchise, you will personally have to sign the Confidentiality and Non-Competition Agreement. This agreement restricts you from engaging in any competitive business activities that offer similar wood surface services, both during your association with the Mr. Sandless franchise and for a specified period after you leave.
The restrictions typically include limitations on owning, operating, or being involved with a competing business within a defined geographic area. The FDD excerpt does not specify the exact terms of the non-compete agreement, but it is common in franchising to prevent individuals with inside knowledge from using it to benefit a competing business. Prospective officers and directors should carefully review the terms of the Confidentiality and Non-Competition Agreement with their legal counsel to fully understand their obligations and restrictions.