Which section of the Mr. Sandless franchise agreement addresses the franchisee's post-termination obligations?

According to the 2025 Mr. Sandless Franchise Disclosure Document, Item 22 discusses contracts related to the franchise agreement. Specifically, section 3.7 addresses the survival of the agreement, stating that the agreement shall survive the termination of the Franchise Agreement. This means that certain obligations and responsibilities outlined in the agreement will continue to be in effect even after the franchise relationship ends.

This survival clause has significant implications for a prospective Mr. Sandless franchisee. It means that even after the franchise is terminated, certain provisions, such as those related to confidentiality, non-compete agreements, or payment obligations, may still apply. Franchisees need to understand which specific sections of the agreement survive termination and for how long these obligations will remain in effect.

For example, the agreement discusses covenants of employees, agents, and third persons in section 18.4, and independent licensee and indemnification in section 19. These sections may contain obligations that extend beyond the termination of the franchise agreement. It is important for a potential franchisee to carefully review these sections and seek legal counsel to fully understand the scope of their post-termination responsibilities.

In summary, while section 3.7 of the contract outlines that the agreement survives termination, franchisees must carefully review the entire Item 22 and related sections to fully understand their obligations after the franchise agreement ends. Understanding these post-termination obligations is crucial for making an informed decision about investing in a Mr. Sandless franchise.