Does Mr. Sandless need to approve all members and managers of a limited liability company transferee?

According to Mr. Sandless's 2025 Franchise Disclosure Document, if a buyer is a limited liability company, Mr. Sandless must approve all members and managers of the limited liability company before the transfer can proceed. This requirement is in addition to the limited liability company meeting Mr. Sandless's general requirements for such entities, as outlined in Section 21 of the franchise agreement, excluding Section 21.6.

This provision gives Mr. Sandless significant control over who can be involved in the ownership and management of a Mr. Sandless franchise. It ensures that individuals associated with the franchise meet the franchisor's standards and are likely to uphold the brand's reputation and operational standards.

For a prospective franchisee, this means that if they plan to transfer their Mr. Sandless franchise to a limited liability company, the approval process will involve scrutiny of all individuals involved in the LLC's management. This could potentially delay or complicate the transfer process if any member or manager is not approved by Mr. Sandless. It is important to consider this requirement when structuring a potential transfer and to ensure that all members and managers are aware of and prepared for this approval process.