If Mr. Sandless requests it, what is the proposed purchaser of my Mr. Sandless business required to submit?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
d the buyer;
- 21.3.5 The buyer's successful completion of our training program as stated in Section 4.1;
- 21.3.6 The buyer's receipt of your last year's business tax return and other documents relevant to your Business;
- 21.3.7 Your execution (or your principals' execution, as applicable) of a general release, in a form prescribed by us, of all claims against us and our officers, directors, agents, and employees. Notwithstanding such release, you shall remain obligated under those provisions of this Agreement that expressly extend beyond the term hereof;
- 21.3.8 The buyer's execution of our then-current Single Unit Franchise Agreement as well as execution of a personal guaranty if a partnership, corporation or limited liability company;
- 21.3.9 Payment to us of a transfer fee in the amount of (a) Five Thousand Dollars ($5,000) per owner no matter how many businesses you are transferring, if the transfer is of a Mr. Sandless Business or a combination Mr. Sandless Business; or (b) One Thousand Dollars ($1,000) per owner no matter how many businesses you are transferring;
- 21.3.10 If the buyer is a corporation or limited liability company, the corporation's or limited liability company's satisfaction of our requirements for such entities as set forth in Section 21 (except Section 21.6) below. In addition, we must approve all shareholders of a corporation transferee, or all members and managers of a limited liability company transferee.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, if you decide to sell your Mr. Sandless franchise, the buyer must fulfill several requirements. The buyer is required to execute the then-current Single Unit Franchise Agreement, which means they must agree to the terms and conditions of the franchise agreement that Mr. Sandless is using at the time of the transfer. If the buyer is a partnership, corporation, or limited liability company, they must also execute a personal guaranty, ensuring that someone is personally responsible for the business's obligations.
Additionally, if the buyer is a corporation or limited liability company, they must meet Mr. Sandless's requirements for such entities, as outlined in Section 21 of the franchise agreement (excluding Section 21.6). Mr. Sandless must also approve all shareholders of a corporation transferee or all members and managers of a limited liability company transferee. Mr. Sandless may also require that a particular individual own at least 51% of the outstanding stock or interest in the company and serve as its chief executive officer or manager.
The buyer is also responsible for obtaining and maintaining all necessary permits and licenses required to operate the Mr. Sandless business within the set time limits. The transfer must comply with all applicable laws, including state and federal laws governing franchise sales. Finally, the purchase price and terms of the transfer must not be so burdensome that they impair the buyer's ability to operate the business and fulfill the franchise agreement. These requirements ensure that the new franchisee is qualified and capable of running the Mr. Sandless business successfully.