If a Mr. Sandless franchisee employs a Designated Manager, what agreement must be obtained from them?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall require and obtain execution of covenants similar to those set forth in this Section 19.4 (including covenants applicable upon the termination of a person's employment with you) from all employees, contractors or third persons who will have access to Mr. Sandless proprietary and Confidential Information, and shall provide to us to an executed versions thereof. Such covenants shall be substantially in the form set forth in Attachment 4 as revised and updated from time to time and contained in the Manual. You shall indemnify and hold us harmless from any and all liability, loss, attorneys' fees, or damage we may suffer as a result of your failure to obtain executed restricted covenants by employees, agents and third persons as required by this Section.
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, if a franchisee employs individuals who will have access to Mr. Sandless's proprietary and confidential information, the franchisee must obtain covenants from these individuals. These covenants must be similar to those outlined in Section 19.4 of the Franchise Agreement, including those applicable after their employment ends.
The franchisee must provide Mr. Sandless with executed versions of these covenants. The specific form for these covenants is detailed in Attachment 4 of the Manual, which may be revised and updated periodically.
The Mr. Sandless franchisee is responsible for protecting the franchisor from any repercussions resulting from a failure to obtain these executed restricted covenants. Specifically, the franchisee must indemnify and hold Mr. Sandless harmless from any liability, loss, attorneys' fees, or damages that Mr. Sandless may incur because the franchisee did not obtain the required covenants from their employees, agents, or other third parties.