Under the Mr. Sandless agreement, what entities are franchisees releasing from claims?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ects;
- 3.2.8 You pay a successor agreement fee to us in the amount of (a) One Thousand Dollars ($1,000), if the Successor Franchise Agreement relates to a Mr. Sandless Business per business owned (the "Successor Agreement Fee").
- 3.2.9 You satisfy our then-current training requirements for continuing franchisees at your expense, as of the date of such subsequent agreement; and
- 3.2.10 You sign a general release in the form prescribed by us, in favor of us and our affiliates and their respective officers, directors, agents, and employees, for all claims arising out of or related to this Agreement or any related agreements with us or our affiliates.
**4.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, franchisees may be required to sign a general release in favor of Mr. Sandless and its affiliates, along with their respective officers, directors, agents, and employees under certain circumstances.
This release is required when a franchisee seeks to renew their franchise agreement under a Successor Franchise Agreement. Specifically, the franchisee must sign a general release for all claims arising out of or related to the original agreement or any related agreements with Mr. Sandless or its affiliates. This means that upon renewal, the franchisee gives up their right to sue Mr. Sandless and related parties for any past issues connected to the franchise agreement.
Additionally, a similar release is required from the franchisee (and their principals, if applicable) when transferring the franchise to a new owner. This release covers all claims against Mr. Sandless, its officers, directors, agents, and employees. However, even with this release, the franchisee remains obligated under any provisions of the original agreement that extend beyond the termination of the agreement. This ensures that certain responsibilities, such as confidentiality or non-compete clauses, remain in effect even after the franchise has been transferred.