Does the Mr. Sandless franchise agreement address third-party beneficiaries?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU UNDERSTAND THAT ANY INCOME OR PROFITS YOU MAY REALIZE WILL BE PRIMARILY THE RESULT OF YOUR EFFORTS AND LABORS, AND NOT THOSE OF US OR THIRD PARTIES.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
The 2025 Mr. Sandless Franchise Disclosure Document does not explicitly use the term "third-party beneficiaries." However, it does state that any income or profits realized by the franchisee will primarily result from their own efforts and labor, not those of Mr. Sandless or third parties. This implies that the agreement is structured to benefit the franchisee directly through their own work, rather than relying on benefits conferred by outside parties.
Additionally, the Mr. Sandless franchise agreement includes a Guaranty Agreement, where a guarantor agrees to personally guarantee the franchisee's obligations to Mr. Sandless. This agreement binds the guarantor to the terms and conditions of the Franchise Agreement, including confidentiality, covenants, and indemnification provisions. The guarantor is jointly and severally liable for the franchisee's obligations, meaning Mr. Sandless can pursue the guarantor directly without first pursuing the franchisee.
While not directly addressing third-party beneficiaries in a dedicated clause, the franchise agreement emphasizes the franchisee's responsibility for their own success and includes a Guaranty Agreement that binds another party to the franchisee's obligations. A prospective franchisee should consult with a legal professional to fully understand the implications of these provisions and how they might affect their rights and responsibilities.