Will Mr. Sandless guarantee my note?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU, AS AN INDEPENDENT BUSINESS PERSON OR ENTITY, RECOGNIZE THAT THERE ARE ECONOMIC HAZARDS IN CONNECTION WITH THE OPERATION OF ANY BUSINESS, INCLUDING THE TYPE CONTEMPLATED PURSUANT TO THIS AGREEMENT. YOU ACKNOWLEDGE THAT WE DO NOT GUARANTEE YOUR SUCCESS, FINANCIAL OR OTHERWISE, EVEN THOUGH YOU MAY FOLLOW OR RELY ON OUR ADVICE, RECOMMENDATIONS, PROGRAMS, POLICIES AND PROCEDURES. YOU ACKNOWLEDGE THAT YOU HAVE MADE AN INDEPENDENT INVESTIGATION OF THE FRANCHISED BUSINESS AND THAT, EXCEPT AS MAY BE CONTAINED IN ITEM 19 OF THE FRANCHISE DISCLOSURE DOCUMENT, NO REPRESENTATION HAS BEEN MADE BY US REGARDING THE POTENTIAL OR FUTURE PROFITABILITY OF THE FRANCHISED BUSINESS, NOR OF THE FUTURE NUMBER OF MR. SANDLESS BUSINESSES AND ANY BENEFITS FLOWING THEREFROM. 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. THIS FRANCHISE IS NOT A SECURITY AND YOU AGREE NOT TO RELY ON US OR ANY THIRD PARTY TO PRODUCE INCOME FOR YOU PURSUANT TO THIS AGREEMENT.
Source: Item 10 — FINANCING (FDD page 19)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, Mr. Sandless does not guarantee a franchisee's success, financial or otherwise. Section 27.4 of the franchise agreement explicitly states that Mr. Sandless does not guarantee your success, even if you follow their advice, recommendations, programs, policies, and procedures.
The FDD emphasizes that a franchisee's success depends on their own efforts, business judgment, employee performance, market conditions, and other factors beyond Mr. Sandless's control. The document also acknowledges that some franchisees are more successful than others, and Mr. Sandless makes no representations that a new franchisee will perform as well as any other franchisee.
Furthermore, the FDD states that any income or profits a franchisee realizes will primarily result from their own efforts and labor, not those of Mr. Sandless or third parties. The franchise is not a security, and franchisees should not rely on Mr. Sandless or any third party to produce income for them. The FDD also recommends that prospective franchisees obtain a review of the agreement and franchise disclosure document by their own lawyer, accountant, or other business advisor before signing.