Does Mr. Sandless need to notify franchisees before assigning the Franchise Agreement?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that at any time after the date of this Agreement, Franchisee will perform such acts and execute and deliver such documents as may be necessary to assist in or accomplish the purposes of this Agreement.
- 3.5 Successors, Assigns, and Affiliates.
All Franchisor's rights and powers, and all Franchisee's obligations, under this Agreement shall be binding on Franchisee's successors, assigns, and affiliated persons or entities as if they had duly executed this Agreement.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
Based on the 2025 Mr. Sandless Franchise Disclosure Document, the excerpts provided do not explicitly state whether Mr. Sandless is required to notify franchisees before assigning the Franchise Agreement. However, the franchise agreement does address the rights and obligations of successors, assigns, and affiliated persons or entities.
Specifically, the franchise agreement states that all of Mr. Sandless's rights and powers, and all of the franchisee's obligations, are binding on the franchisee's successors, assigns, and affiliated persons or entities as if they had duly executed the agreement. This suggests that the agreement can be transferred or assigned to another party.
Since the FDD excerpts do not specify notification requirements, it is important for a prospective Mr. Sandless franchisee to seek clarification from the franchisor regarding the conditions under which the Franchise Agreement can be assigned and whether franchisees will be notified in advance of any such assignment. Understanding these terms is crucial for franchisees to be aware of potential changes in the franchisor-franchisee relationship.