What is the dependency between the franchise agreement and the Confidentiality and Non-Competition Agreement for Mr. Sandless?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
WHEREAS, Franchisee desires to enter into a franchise agreement with Franchisor for an Mr. Sandless business ("Franchise Agreement") which will allow Franchisee to conduct internet-based advertising, maintain social media accounts, software accounts, and use telephone listings linked to the Mr. Sandless brand.
WHEREAS, Franchisor would not enter into the Franchise Agreement without Franchisee's agreement to enter into, comply with, and be bound by all the terms and provisions of this Agreement;
NOW, THEREFORE, for and in consideration of the foregoing and the mutual promises and covenants contained herein, and in further consideration of the Franchise Agreement and the mutual promises and covenants contained therein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
18.4 Covenants of Employees, Agents, and Third Persons
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 the 2025 Mr. Sandless Franchise Disclosure Document, the Confidentiality and Non-Competition Agreement is directly linked to the Franchise Agreement. Mr. Sandless requires franchisees, as well as their trained employees, shareholders, officers, directors, general partners, members, and managers, to adhere to the Confidentiality and Non-Competition Agreement. This agreement is included as Attachment 4 to the Franchise Agreement.
The franchisor makes it clear that they would not enter into the Franchise Agreement without the franchisee's commitment to comply with and be bound by the terms of the Internet Advertising, Social Media, Software and Telephone Listing Agreement. This highlights the importance Mr. Sandless places on protecting its confidential information and maintaining a competitive advantage.
Furthermore, franchisees must ensure that all employees, contractors, and third parties with access to Mr. Sandless's proprietary and confidential information also execute similar covenants. These covenants should align with Attachment 4 of the Franchise Agreement, as updated in the manual. Failure to obtain these executed covenants can result in the franchisee being liable for any losses, attorney's fees, or damages suffered by Mr. Sandless due to the breach of confidentiality or non-competition by these individuals. This underscores the franchisee's responsibility in safeguarding the franchisor's sensitive information and enforcing non-competition terms among those associated with their franchise.