factual

What happens if Mr. Sandless does not want the Electronic Advertising after the Franchise Agreement is terminated?

Mr_Sandless Franchise · 2025 FDD

Answer from 2025 FDD Document

, or interest in and to certain domain names, social media accounts, software accounts, hypertext markup language, uniform resource locator addresses, access to corresponding internet websites, and the right to hyperlink to certain websites and listings on various internet search engines (collectively, "Electronic Advertising") related to the Franchised Business or the Marks.

  • 2.2 Interest in Telephone Numbers and Listings. Franchisee has or will acquire during the term of the Franchise Agreement, certain right, title, and interest in and to those certain telephone numbers and regular, classified, internet page, and other telephone directory listings (collectively, the "Telephone Listings") related to the Franchised Business or the Marks.

  • 2.3 Transfer. On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately:

  • 2.3.1 direct all internet service providers, domain name registries, internet search engines, social media and software companies, and other listing agencies (collectively, the "Internet Companies") with which Franchisee has Electronic Advertising and Telephone Listings: (i) to transfer all of Franchisee's interest in such Electronic Advertising and Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer. In the event Franchisor does not desire to accept any or all such Electronic Advertising and Telephone Listings, Franchisee will immediately direct the Internet Companies to terminate such Electronic Advertising and Telephone Listings or will take such other actions with respect to the Electronic Advertising and Telephone Listings as Franchisor directs; and

  • 2.3.1 direct all telephone companies, telephone directory publishers, and telephone directory listing agencies (collectively, the "Telephone Companies") with which Franchisee has Telephone Listings: (i) to transfer all Franchisee's interest in such Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer. In the event Franchisor does not desire to accept any or all such Telephone Listings, Franchisee will immediately direct the Telephone Companies to terminate such Telephone Listings or will take such other actions with respect to the Telephone Listings as Franchisor directs.

  • 2.4 Appointment; Power of Attorney. Franchisee hereby constitutes and appoints Franchisor and any officer or agent of Franchisor, for Franchisor's benefit under the Franchise Agreement and this Agreement or otherwise, with full power of substitution, as Franchisee's true and lawful attorney-in-fact with full power and authority in Franchisee's place and stead, and in Franchisee's name or the name of any affiliated person or affiliated company of Franchisee, to take any and all appropriate action and to execute and deliver any and all documents that may be necessary or desirable to accomplish the purposes of this Agreement. Franchisee further agrees that this appointment constitutes a power coupled with an interest and is irrevocable until Franchisee has satisfied all of its obligations under the Franchise Agreement and any and all other agreements to which Franchisee and any of its affiliates on the one hand, and Franchisor and any of its affiliates on the other, are parties, including without limitation this Agreement. Without limiting the generality of the foregoing, Franchisee hereby grants to Franchisor the power and right to do the following:

  • 2.4.1 Direct the Internet Companies to transfer all Franchisee's interest in and to the Electronic Advertising and Telephone Listings to Franchisor, or alternatively, to direct the Internet Companies to terminate any or all of the Electronic Advertising and Telephone Listings;

  • 2.4.2 Direct the Telephone Companies to transfer all Franchisee's interest in and to the Telephone Listings to Franchisor, or alternatively, to direct the Telephone Companies to terminate any or all of the Telephone Listings; and

  • 2.4.3 Execute such standard assignment forms or other documents as the Internet Companies and/or Telephone Companies may require in order to affect such transfers or terminations of Franchisee's interest.

  • 2.5 Certification of Termination. Franchisee hereby directs the Internet Companies and Telephone Companies to accept, as conclusive proof of Termination of the Franchise Agreement, Franchisor's written statement, signed by an officer or agent of Franchisor, that the Franchise Agreement has terminated.

  • 2.6 Cessation of Obligations.

Source: Item 22 — CONTRACTS (FDD page 42)

What This Means (2025 FDD)

According to the 2025 Mr. Sandless Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee is required to direct all Internet Companies with which the franchisee has Electronic Advertising and Telephone Listings to transfer all of the franchisee's interest in such Electronic Advertising and Telephone Listings to Mr. Sandless.

However, if Mr. Sandless does not want to accept any or all of the Electronic Advertising and Telephone Listings, the franchisee must immediately direct the Internet Companies to terminate such Electronic Advertising and Telephone Listings or take such other actions with respect to the Electronic Advertising and Telephone Listings as Mr. Sandless directs. This ensures that the franchisee no longer benefits from the Mr. Sandless brand and system after the agreement ends, and that Mr. Sandless has control over its online presence.

Similarly, the franchisee must also direct all Telephone Companies with which the franchisee has Telephone Listings to transfer all the franchisee's interest in such Telephone Listings to Mr. Sandless. If Mr. Sandless does not desire to accept any or all such Telephone Listings, the franchisee will immediately direct the Telephone Companies to terminate such Telephone Listings or will take such other actions with respect to the Telephone Listings as Mr. Sandless directs.

Mr. Sandless is also granted power of attorney to take any action and execute any documents necessary to accomplish the transfer or termination of the Electronic Advertising and Telephone Listings. Once the Internet Companies and Telephone Companies have transferred all the franchisee's interests to Mr. Sandless, the franchisee will have no further interest in, or obligations with respect to, the particular Electronic Advertising and/or Telephone Listing, although the franchisee remains liable for any outstanding payments owed to these companies for obligations incurred before the transfer.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.