Can Mr. Sandless require a franchisee to assent to a release that deprives them of rights and protections?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
nt executed in connection with the franchise.
MR. SANDLESS FRANCHISE LLC By: Name: Title: FRANCHISEE:
DISCLOSURE REQUIRED BY THE STATE OF MICHIGAN
THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU:
- (a) A prohibition on the right of a franchisee to join an association of franchises.
- (b) A requirement that a franchisee assent to a release, assignment, novation, waiver or estoppel which deprives a franchisee of rights and protections provided in this act. This shall not preclude a franchisee, after entering into a franchise agreement, from settling any and all claims.
- (c) A provision that permits a franchisor to terminate a franchise prior to the expiration of its term except for good cause. Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than thirty (30) days, to cure such failure.
- (d) A provision that permits a franchisor to refuse to renew a franchise without fairly compensating the franchisee by repurchase or other means for the fair market value at the time of expiration of the franchisee's inventory, supplies, equipment, fixtures and furnishings. Personalized materials which have no value to the franchisor and inventory, supplies, equipment, fixtures and furnishings not reasonably required in the conduct of the franchise business are not subject to compensation.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, whether Mr. Sandless can require a franchisee to assent to a release that deprives them of rights and protections depends on the state where the franchise operates.
In Michigan, the FDD states that the State of Michigan prohibits certain unfair provisions that are sometimes in franchise documents, and if any of those provisions are in the franchise documents, the provisions are void and cannot be enforced against the franchisee. One of the listed provisions is "A requirement that a franchisee assent to a release, assignment, novation, waiver or estoppel which deprives a franchisee of rights and protections provided in this act." However, this does not prevent a franchisee from settling claims after entering into a franchise agreement.
In Minnesota, the FDD states that Minnesota Rule 2860.4400D prohibits Mr. Sandless from requiring a franchisee to assent to a general release. In Maryland, the general release required as a condition of renewal and/or assignment/transfer are not intended to nor shall they act as a release, estoppel or waiver of any liability under the Maryland Franchise Registration and Disclosure Law. In Virginia, it is unlawful for Mr. Sandless to use undue influence to induce a franchisee to surrender any right given to him under the franchise, and any provision of the Franchise Agreement involving the use of undue influence by the franchisor to induce a franchisee to surrender any rights given to him under the franchise may not be enforceable. In Indiana, a franchisee may not agree to waive any claims or rights.