Is a Designated Manager for a Mr. Sandless franchise required to have an equity interest in the Business?

According to Mr. Sandless's 2025 Franchise Disclosure Document, a Designated Manager is not required to have an equity interest in the Business. However, Mr. Sandless retains the right to prohibit the employment of a particular manager if that person has demonstrated a lack of honesty or ability to manage the Business.

Each manager must be trained in a manner satisfactory to Mr. Sandless before assuming managerial responsibilities. Mr. Sandless may require that any proposed manager complete their initial training program, at the franchisee's expense, before the manager may assume managerial responsibilities. The franchisee makes their own business arrangements with managers, and Mr. Sandless is not involved in setting conditions for employment.

The franchisee must obtain from each manager an agreement to maintain the confidentiality of the Confidential Information obtained by virtue of his or her employment and to not participate in a competing business. The franchisee must also perform, through an accredited agency that has been approved by Mr. Sandless in the Operations Manual, a background check of prospective employees before hiring them, and only hire employees that have passed the required background check, and otherwise meet the criteria provided in the Operations Manual.