Does a Mr. Sandless franchisee need approval for a proposed Designated Manager or Technical Manager?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You do not need to apply to us for approval of a proposed Designated Manager or Technical Manager, but we retain the right to prohibit employment of a particular manager if that person has demonstrated to us a lack of honesty or ability to manage the Business. Each of your managers must be trained in a manner satisfactory to us before assuming managerial responsibilities, and we may require that any proposed manager complete our initial training program, at your expense, before the manager may assume managerial responsibilities. You make your own business arrangements with managers, and we are not involved in setting conditions for employment. You must obtain from each manager you employ an agreement, in the form attached as Attachment 4 of the Franchise 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. You must also perform, through an accredited agency that has been approved by us 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. Your Designated Manager is not required to have an equity interest in the Business.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 29–30)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, franchisees do not need to seek approval from Mr. Sandless for their proposed Designated Manager or Technical Manager. However, Mr. Sandless retains the right to prohibit the employment of a manager if they demonstrate a lack of honesty or ability to manage the business.
Mr. Sandless requires that each manager be trained in a manner satisfactory to them before they assume managerial responsibilities. Mr. Sandless may also require any proposed manager to complete their initial training program, at the franchisee's expense, before the manager can take on managerial duties. The franchisee is responsible for making their own business arrangements with managers, as Mr. Sandless is not involved in setting conditions for employment.
Furthermore, Mr. Sandless requires franchisees to obtain an agreement from each manager, in a form attached to the Franchise Agreement, to maintain the confidentiality of confidential information and to not participate in a competing business. Franchisees must also perform a background check of prospective employees through an accredited agency approved by Mr. Sandless in the Operations Manual and only hire employees who pass the required background check and meet the criteria provided in the Operations Manual. The Designated Manager is not required to have an equity interest in the business.