What costs must the Releasor pay if they breach the Mr. Sandless release agreement?

According to the 2025 Mr. Sandless Franchise Disclosure Document, if the Releasor breaches any promises, covenants, or undertakings made in the release agreement through any act or omission, they must indemnify Mr. Sandless for all costs and expenses incurred as a result of the breach. This includes reasonable attorneys' fees.

In practical terms, this means that if a franchisee (the Releasor) signs a release agreement with Mr. Sandless and then violates the terms of that agreement, the franchisee will be responsible for covering all of Mr. Sandless's resulting costs. These costs can include a wide range of expenses, such as court fees, investigation costs, and any other expenses Mr. Sandless incurs to address the breach.

The inclusion of "reasonable attorneys' fees" is a standard clause in such agreements. It ensures that Mr. Sandless can recover the costs of hiring legal representation to enforce the release agreement. This provision is designed to deter the Releasor from breaching the agreement, as the financial consequences could be significant.

Prospective Mr. Sandless franchisees should carefully review the terms of any release agreement before signing it and understand the potential financial implications of a breach. It is advisable to seek legal counsel to fully understand the scope of the release and the potential liabilities involved.