How much notice is required to terminate the license agreement for the Mr. Sandless Proprietary Marks?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Under a March 26, 2010 license agreement, Daniel J. Prasalowicz licensed to us the right to use the Proprietary Marks and to sublicense them to System franchisees. The license agreement also allows our Affiliate, Mr. Sandless, Inc., the right to use the Proprietary Marks without the ability to sub-license. Under the license
agreement, we and Mr. Prasalowicz each have the right to terminate this license agreement on 30 days' notice. Upon termination of this license agreement, Mr. Prasalowicz will assume all of the rights and obligations of ours regarding the Proprietary Marks. There are no other agreements that significantly limit our rights to use or license the use of the Proprietary Marks in a manner that is material to the franchise.
Source: Item 13 — TRADEMARKS (FDD pages 26–28)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the license agreement, dated March 26, 2010, grants Mr. Sandless Franchise LLC the right to use and sublicense the Proprietary Marks from Daniel J. Prasalowicz. This agreement also allows Mr. Sandless, Inc., an affiliate, to use the Proprietary Marks, but without the ability to sublicense them.
The critical point for prospective franchisees is the termination clause. Both Mr. Sandless Franchise LLC and Mr. Prasalowicz have the right to terminate the license agreement with 30 days' notice. Upon termination, Mr. Prasalowicz assumes all rights and obligations pertaining to the Proprietary Marks.
This 30-day termination clause has significant implications. It means that Mr. Sandless's right to use the trademarks that franchisees depend on is not guaranteed indefinitely. If the license agreement is terminated, Mr. Prasalowicz will control the trademarks, which could impact the franchisees' ability to operate under the Mr. Sandless name. Prospective franchisees should carefully consider this when evaluating the long-term security of their investment. It would be prudent to inquire with Mr. Sandless about the stability of their relationship with Mr. Prasalowicz and any potential risks associated with this termination clause.