Can Mr. Sandless disapprove a transfer if the purchase price is too burdensome?

According to Mr. Sandless's 2025 Franchise Disclosure Document, Mr. Sandless can disapprove a transfer if the purchase price and terms of the proposed transfer are too burdensome for the buyer. Specifically, Mr. Sandless can disapprove the transfer if the purchase price and terms impair or materially threaten the future operation of the business and performance under its franchise agreement.

This provision protects both Mr. Sandless and the incoming franchisee. Mr. Sandless wants to ensure that the new franchisee is set up for success and can uphold the brand's standards. By assessing the financial burden on the buyer, Mr. Sandless can prevent a transfer that might lead to financial distress and potential failure.

For a prospective Mr. Sandless franchisee looking to sell their business, this means they need to consider the financial implications of the sale for the buyer. Setting a reasonable purchase price and terms that allow the buyer to operate successfully is crucial for getting the transfer approved by Mr. Sandless. Franchisees should be prepared to justify the sale price and terms to both the buyer and Mr. Sandless, demonstrating that the business remains viable under the new ownership.