Does the Confidentiality and Non-Competition Agreement apply to shareholders of the Mr. Sandless franchisee?

According to the 2025 Mr. Sandless Franchise Disclosure Document, the Confidentiality and Non-Competition Agreement does apply to shareholders of a Mr. Sandless franchisee. Specifically, the agreement is designed for trained employees, shareholders, officers, directors, general partners, members, and managers of the franchisee. This indicates that Mr. Sandless takes measures to protect its confidential information and business practices by ensuring that individuals associated with the franchise are bound by these protective agreements.

This requirement has significant implications for prospective franchisees who plan to operate their Mr. Sandless business through a corporation or limited liability company. All shareholders, members, and managers must sign the Confidentiality and Non-Competition Agreement, personally agreeing to be bound by its terms. This ensures that all individuals with a stake in the franchise are committed to maintaining confidentiality and refraining from competitive activities, even if they are not directly involved in the day-to-day operations.

Furthermore, if a franchisee operates as a corporation or limited liability company, the corporation or LLC must be newly organized and confined exclusively to operating the Mr. Sandless franchise. The franchisee must own at least 51% of the outstanding shares or a controlling interest in the LLC. All shareholders or members/managers must sign a Guaranty Agreement, agreeing to be bound by the terms of the Franchise Agreement and guaranteeing the franchisee's obligations. These measures ensure that the Mr. Sandless franchise maintains control over its brand and operations, even when franchisees choose to structure their businesses as corporations or LLCs.