What employment files must a Mr. Sandless franchisee provide to the franchisor upon termination?

According to the 2025 Mr. Sandless Franchise Disclosure Document, franchisees must obtain and provide executed covenants from all employees, contractors, or third parties who have access to Mr. Sandless's proprietary and confidential information. These covenants must be similar to those outlined in Section 19.4 of the franchise agreement and substantially in the form set forth in Attachment 4, as revised and updated.

These covenants are applicable upon the termination of a person's employment with the franchisee. The franchisee is obligated to provide executed versions of these covenants to Mr. Sandless. This requirement ensures that confidential information remains protected even after an employee, contractor, or third party no longer works with the franchisee.

The franchisee is responsible for indemnifying and holding Mr. Sandless harmless from any liability, loss, attorneys' fees, or damage resulting from the failure to obtain these executed restricted covenants. This underscores the importance of adhering to this requirement to avoid potential legal and financial repercussions.