Does the release in the Mr. Sandless agreement cover unknown claims?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
onmonetary obligations under this Agreement and any other agreement between you and us or our affiliates;
21.3.2 The buyer having met our qualifications for new franchisees;
- 21.3.3 The buyer's upgrade of the Business to conform with our then-current specifications;
- 21.3.4 We are provided with an executed agreement of sale between you and the buyer;
- 21.3.5 The buyer's successful completion of our training program as stated in Section 4.1;
- 21.3.6 The buyer's receipt of your last year's business tax return and other documents relevant to your Business;
- 21.3.7 Your execution (or your principals' execution, as applicable) of a general release, in a form prescribed by us, of all claims against us and our officers, directors, agents, and employees. Notwithstanding such release, you shall remain obligated under those provisions of this Agreement that expressly extend beyond the term hereof;
- 21.3.8 The buyer's execution of our then-current Single Unit Franchise Agreement as well as execution of a personal guaranty if a partnership, corporation or limited liability company;
- 21.3.9 Payment to us of a transfer fee in the amount of (a) Five Thousand Dollars ($5,000) per owner no matter how many businesses you are transferring, if the transfer is of a Mr. Sandless Business or a combination Mr. Sandless Business; or (b) One Thousand Dollars ($1,000) per owner no matter how many businesses you are transferring;
- 21.3.10 If the buyer is a corporation or limited liability company, the corporation's or limited liability company's satisfaction of our requirements for such ent
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, franchisees may be required to execute a general release of all claims against Mr. Sandless and its representatives. Specifically, as part of transferring a franchise, the franchisee must execute a general release in a form prescribed by Mr. Sandless, which covers all claims against Mr. Sandless, its officers, directors, agents, and employees.
Additionally, when a franchisee enters into a successor agreement, they must sign a general release in favor of Mr. Sandless, its affiliates, and their respective officers, directors, agents, and employees. This release covers all claims arising out of or related to the original agreement or any related agreements with Mr. Sandless or its affiliates.
While the FDD mentions the requirement of a general release, it does not explicitly state whether this release includes a waiver of unknown claims. A prospective franchisee should seek clarification from Mr. Sandless regarding the scope of the general release and consult with a legal professional to fully understand the implications of signing such a release.