Which item and section of the Mr. Sandless Franchise Agreement are amended to further state inconsistencies?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent of any inconsistencies, Item 5 and Section 10.1 of the Franchise Agreement are hereby amended to further state:
"Based upon Franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, Franchisor will defer collection of the Initial Franchise Fee and other initial fees payable to Franchisor until Franchisor has fulfilled its initial pre-opening obligations."
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, Item 5 and Section 10.1 of the Franchise Agreement are amended to further state inconsistencies regarding the collection of fees in Maryland. Specifically, these sections are amended to reflect that, based on Mr. Sandless's financial condition, the Maryland Securities Commissioner requires a financial assurance.
This amendment mandates that Mr. Sandless will defer collection of the Initial Franchise Fee and other initial fees payable to Mr. Sandless until it has fulfilled its initial pre-opening obligations. This ensures that franchisees in Maryland are not required to pay these fees until Mr. Sandless has met its obligations to support the franchisee's launch.
This protection is particularly important for prospective franchisees in Maryland, as it mitigates the risk of paying initial fees before Mr. Sandless fulfills its pre-opening responsibilities. Franchisees should ensure they understand all pre-opening obligations and confirm that Mr. Sandless has met these before any fees are collected.