Are the covenants required by Mr. Sandless applicable upon the termination of a person's employment?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall require and obtain execution of covenants similar to those set forth in this Section 19.4 (including covenants applicable upon the termination of a person's employment with you) from all employees, contractors or third persons who will have access to Mr. Sandless proprietary and Confidential Information, and shall provide to us to an executed versions thereof. Such covenants shall be substantially in the form set forth in Attachment 4 as revised and updated from time to time and contained in the Manual. You shall indemnify and hold us harmless from any and all liability, loss, attorneys' fees, or damage we may suffer as a result of your failure to obtain executed restricted covenants by employees, agents and third persons as required by this Section.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees must ensure that all employees, contractors, and third parties who have access to Mr. Sandless's proprietary and confidential information agree to covenants similar to those outlined in Section 19.4 of the agreement. These covenants are applicable even after the termination of a person's employment with the franchisee.
Specifically, franchisees must obtain signed agreements from these individuals, using a form substantially similar to Attachment 4 in the manual, as updated by Mr. Sandless. These agreements contain restrictions that apply both during and after their association with the Mr. Sandless franchise.
The franchisee is responsible for enforcing these covenants and must indemnify Mr. Sandless against any losses, attorney's fees, or damages resulting from the franchisee's failure to obtain these executed restricted covenants from their employees, agents, and third parties. This highlights the importance of franchisees carefully managing access to confidential information and ensuring all relevant parties are bound by appropriate agreements to protect Mr. Sandless's interests.