Who is a third-party beneficiary of the Confidentiality and Non-Competition Agreement for a Mr. Sandless franchise?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 29–30)
What This Means (2025 FDD)
Based on the 2025 Mr. Sandless Franchise Disclosure Document, the franchisee is required to have its employees, contractors, and other third parties who have access to Mr. Sandless's confidential information sign agreements similar to those outlined in Section 19.4 of the franchise agreement. These agreements must be substantially in the form of Attachment 4, which is the Confidentiality and Non-Competition Agreement.
Mr. Sandless is considered a beneficiary of these agreements. The franchisee must provide executed copies of these agreements to Mr. Sandless. This ensures that Mr. Sandless can enforce the confidentiality and non-competition terms directly against those individuals if necessary.
If a Mr. Sandless franchisee fails to obtain these executed agreements from their employees, contractors, or other relevant third parties, the franchisee is obligated to indemnify and hold Mr. Sandless harmless from any liability, losses, attorney's fees, or damages that Mr. Sandless may incur as a result of this failure. This provision protects Mr. Sandless's interests by ensuring that the franchisee takes responsibility for maintaining the confidentiality of proprietary information within their business operations.