What is the purpose of the Confidentiality and Non-Competition Agreement for general partners, members, and managers of a Mr. Sandless franchisee?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ATTACHMENT 4
TO
MR. SANDLESS FRANCHISE LLC SINGLE UNIT FRANCHISE AGREEMENT
CONFIDENTIALITY AND NON-COMPETITION AGREEMENT
(For trained employees, shareholders, officers, directors, general partners, members and managers of Franchisee)
You shall require and obtain execution of covenants similar to those set forth in this Section 19.4 (including covenants applicable upon the termination of a person's employment with you) from all employees, contractors or third persons who will have access to Mr. Sandless proprietary and Confidential Information, and shall provide to us to an executed versions thereof. Such covenants shall be substantially in the form set forth in Attachment 4 as revised and updated from time to time and contained in the Manual. You shall indemnify and hold us harmless from any and all liability, loss, attorneys' fees, or damage we may suffer as a result of your failure to obtain executed restricted covenants by employees, agents and third persons as required by this Section.
Business layout, advertising formats, accounting systems, operations systems, policies, procedures, systems, compilations of information, records, specifications, manuals, methods and procedures for sandless wood floor refinishing, dustless wood floor refinishing, sand and stain wood floor refinishing, wood floor care, wood floor cleaning, and floor maintenance, exterior wood refinishing, wood care, wood cleaning, and wood maintenance and other confidential information which we or our affiliates have developed for use in the operation of Mr. Sandless Businesses. You may not contest, directly or indirectly, our ownership of our trade secrets, methods or procedures, or contest our right to register, use or license others to use any such trade secrets, methods and procedures. You (including your partners, officers, directors, shareholders, as applicable), your employees, and their respective heirs, successors and assigns, are prohibited from using and/or disclosing any Confidential Information in any manner other than as we permit and must execute Confidentiality and Non-Compete Agreement in the form attached as Attachment 4.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, Attachment 4 is a Confidentiality and Non-Competition Agreement that trained employees, shareholders, officers, directors, general partners, members, and managers of the franchisee must sign. Mr. Sandless requires franchisees to ensure that all employees, contractors, or third parties with access to Mr. Sandless's confidential information sign covenants similar to those outlined in Section 19.4 of the agreement. These covenants must be substantially in the form set forth in Attachment 4, as revised and updated.
This agreement aims to protect Mr. Sandless's proprietary and confidential information. This includes trade secrets, methods, procedures, business layout, advertising formats, accounting systems, operations systems, policies, procedures, systems, compilations of information, records, specifications, manuals, and methods and procedures for various services. These services include sandless wood floor refinishing, dustless wood floor refinishing, sand and stain wood floor refinishing, wood floor care, wood floor cleaning, floor maintenance, exterior wood refinishing, wood care, wood cleaning, and wood maintenance.
The franchisee is responsible for obtaining these signed agreements and must indemnify Mr. Sandless against any losses, attorney's fees, or damages resulting from a failure to do so. This ensures that anyone with access to Mr. Sandless's sensitive business information is legally bound to protect it, both during and after their association with the franchise. This is a common practice in franchising to maintain the integrity and competitive advantage of the franchise system.