Which sections of the Mr. Sandless Franchise Agreement are specifically referenced regarding confidentiality, covenants, and indemnification?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| WHEREAS, a Franchise Agreement dated | ("Franchise Agreement"), has |
|---|---|
| been entered into between Mr. Sandless Franchise LLC ("Franchisor") and | |
| (referred to as "Franchisee") for the operation by Franchisee of a Mr. Sandless pursuant to such | |
| Franchise Agreement; and | |
| WHEREAS, the undersigned guarantor desires to guarantee the obligations of Franchisee to | |
| Franchisor; | |
| NOW, THEREFORE, the parties hereto, intending to be legally bound, do hereby agree as follows: | |
| The undersigned, as a person with an interest in a Mr. Sandless franchise, agrees to personally and | |
| unconditionally guarantee the obligations of Franchisee to Franchisor and shall personally be subject to and | |
| bound by all terms, conditions, restrictions and prohibitions contained in the Franchise Agreement | |
| including, without limitation, the confidentiality provisions, covenants, and indemnification provisions | |
| contained in Sections 12, 18 and 19.4, respectively. Further, the undersigned agrees to personally act as | |
| surety for the full and faithful performance of all of the financial obligations, commitments and payments | |
| required of the Franchisee in such Franchise Agreement. The undersigned agrees that Franchisor does not | |
| have to pursue any remedies it may have against the Franchisee or any other individual guarantor; but, | |
| rather, it may proceed directly and primarily against the undersigned with or without joining the Franchisee | |
| or other guarantors as principals or as named parties in any such proceeding. The undersigned is jointly | |
| and severally liable for such obligations, commitments and payments required of the Franchisee. | |
| Guarantor | |
| Address: | |
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the Guaranty Agreement references specific sections of the Franchise Agreement related to confidentiality, covenants, and indemnification. Specifically, Sections 12, 18, and 19.4 are cited in the context of the guarantor's obligations. This means that the person guaranteeing the franchisee's obligations is also bound by the terms in those sections.
Section 12 likely contains the confidentiality provisions, meaning the guarantor must also keep Mr. Sandless's proprietary information secret. Section 18 probably outlines various covenants or promises made by the franchisee, which the guarantor must ensure are upheld. Section 19.4 likely details the franchisee's indemnification obligations, meaning the guarantor is also responsible for protecting Mr. Sandless from liabilities arising from the franchisee's actions as outlined in that section.
This arrangement ensures that Mr. Sandless has recourse not only to the franchisee but also to the guarantor for these critical aspects of the franchise agreement. The guarantor is essentially agreeing to be personally bound by these terms, adding an extra layer of security for Mr. Sandless. A prospective franchisee should carefully review Sections 12, 18, and 19.4 to fully understand the obligations they are guaranteeing.