Must a Mr. Sandless franchisee pay all monies due upon termination/non renewal?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY | |
|---|---|---|---|
| i. | Franchisee's obligations on termination/ non renewal | 23 | You must pay all monies due; stop using the Proprietary Marks; cancel and/or transfer all registrations and phone numbers under the name "Mr. Sandless" return the Operations Manual and all Confidential Information; maintain your books and records for at least one year; provide us with list of employees and employee files; comply with your non-competition and confidentiality obligations; and sign any documents necessary to effectuate the termination. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, if the franchise agreement is terminated or not renewed, the franchisee is obligated to pay all outstanding monies owed to Mr. Sandless. Additionally, the franchisee must cease using Mr. Sandless's proprietary marks, and transfer all registrations and phone numbers associated with the name "Mr. Sandless." The franchisee is also required to return the Operations Manual and all Confidential Information to Mr. Sandless.
Furthermore, the franchisee must maintain their books and records for at least one year following termination or non-renewal. They must also provide Mr. Sandless with a list of employees and employee files. Compliance with non-competition and confidentiality obligations is also required, along with signing any documents necessary to finalize the termination.
This obligation is standard in most franchise agreements, ensuring that the franchisee fulfills all financial responsibilities and ceases using the franchisor's intellectual property upon the end of the franchise relationship. Prospective franchisees should carefully review the termination and non-renewal sections of the franchise agreement to fully understand their obligations.