As a third-party, who has the independent right to enforce the Confidentiality and Non-Compete Agreements signed by the Designated Manager and Technical Manager of 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 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
Based on the 2025 Mr. Sandless Franchise Disclosure Document, the franchisee is required to obtain confidentiality and non-compete agreements from employees, contractors, or third parties who have access to Mr. Sandless's confidential information. These agreements must be similar to those outlined in Section 19.4 of the franchise agreement and substantially in the form set forth in Attachment 4.
The franchisee must provide executed copies of these agreements to Mr. Sandless. The franchisee is also obligated to indemnify and hold Mr. Sandless harmless from any liabilities, losses, attorney's fees, or damages resulting from the failure to obtain these executed agreements.
Therefore, Mr. Sandless, as the franchisor, retains the right to enforce these agreements, as the franchisee is required to provide these agreements to them and is liable for any failure to obtain them. The FDD does not explicitly grant independent enforcement rights to any other third party.