Are Mr. Sandless franchisees required to execute a Confidentiality and Non-Compete Agreement?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You (including your partners, officers, directors, shareholders, as applicable), your employees, and their respective heirs, successors and assigns, are prohibited from using and/or disclosing any Confidential Information in any manner other than as we permit and must execute Confidentiality and Non-Compete Agreement in the form attached as Attachment 4.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, franchisees, their employees, and other related parties are required to sign a Confidentiality and Non-Competition Agreement. This requirement is highlighted in Item 22, which discusses the various contracts a franchisee will need to understand and agree to. Attachment 4 to the Mr. Sandless franchise agreement is specifically the Confidentiality and Non-Competition Agreement.
Mr. Sandless requires franchisees to ensure that their employees, contractors, or any third parties with access to the company's proprietary and confidential information also execute similar confidentiality and non-compete agreements. These agreements must be substantially in the form of Attachment 4, as outlined in the operations manual. Franchisees are obligated to provide Mr. Sandless with executed copies of these agreements.
The franchisee is responsible for indemnifying Mr. Sandless against any losses, legal fees, or damages resulting from a failure to obtain these executed confidentiality and non-compete agreements from their personnel. This underscores the importance Mr. Sandless places on protecting its confidential information and maintaining a competitive advantage, a fairly standard practice in franchising to protect the brand's trade secrets and customer relationships.