What is the dependency between Article 21 and the termination conditions for a Mr. Sandless franchise?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
22.6 Our Right to Discontinue Services to You
If you are in breach of any obligation under this Agreement, and we deliver to you a notice of termination pursuant to this Article 22, we have the right to suspend our performance of any of our obligations under this Agreement including, without limitation, the sale or supply of any services or products for which we are an approved supplier to you and/or suspension of your web page on our Website, until such time as you correct the breach.
22.7 Amendment Pursuant to Applicable Law
Notwithstanding anything to the contrary contained in this Article, if any valid, applicable law or regulation of a competent governmental authority having jurisdiction over this franchise and the parties hereto shall limit our rights of termination under this Agreement or shall require longer notice periods than those set forth above, this Agreement is deemed amended to satisfy the minimum notice periods or restrictions upon such termination required by such laws and regulations; provided, however, that such constructive amendment shall not be deemed a concession by us that the grounds for termination set forth in this Agreement do not constitute "good cause" for termination within the meaning ascribed to that term
by any applicable law or regulation. We shall not be precluded from contesting the validity, enforceability or application of such laws or regulations in any action, hearing or proceeding relating to this Agreement or the termination of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
Based on the 2025 Mr. Sandless Franchise Disclosure Document, Article 22 outlines the franchisor's right to discontinue services to the franchisee if the franchisee breaches any obligation under the agreement. Specifically, if Mr. Sandless delivers a notice of termination under Article 22, they have the right to suspend their performance of obligations, including the sale or supply of services or products and suspension of the franchisee's webpage on the Mr. Sandless website. This suspension remains in effect until the franchisee corrects the breach.
Furthermore, Article 22 states that if any applicable law or regulation limits the franchisor's rights of termination or requires longer notice periods, the agreement is deemed amended to satisfy those minimum requirements. However, this amendment does not concede that the grounds for termination in the agreement do not constitute "good cause" for termination under applicable law. Mr. Sandless retains the right to contest the validity, enforceability, or application of such laws or regulations.
In practical terms, this means that a Mr. Sandless franchisee needs to be aware that a breach of the franchise agreement can lead to a suspension of services from the franchisor during the termination process. Additionally, franchisees should understand that legal requirements regarding termination can override the terms of the franchise agreement, potentially affecting the termination process and their rights.