Under what circumstances is the Mr. Sandless franchise agreement automatically amended regarding termination rights?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary contained in this Article, if any valid, applicable law or regulation of a competent governmental authority having jurisdiction over this franchise and the parties hereto shall limit our rights of termination under this Agreement or shall require longer notice periods than those set forth above, this Agreement is deemed amended to satisfy the minimum notice periods or restrictions upon such termination required by such laws and regulations; provided, however, that such constructive amendment shall not be deemed a concession by us that the grounds for termination set forth in this Agreement do not constitute "good cause" for termination within the meaning ascribed to that term
by any applicable law or regulation. We shall not be precluded from contesting the validity, enforceability or application of such laws or regulations in any action, hearing or proceeding relating to this Agreement or the termination of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the franchise agreement is automatically amended if any valid and applicable law or regulation from a competent governmental authority with jurisdiction over the franchise and its parties limits Mr. Sandless's termination rights or requires longer notice periods than those specified in the agreement.
In such cases, the agreement is considered amended to meet the minimum notice periods or termination restrictions mandated by these laws and regulations. However, this automatic amendment does not imply that Mr. Sandless concedes that the original grounds for termination in the agreement do not constitute "good cause" for termination under applicable laws or regulations.
Mr. Sandless retains the right to challenge the validity, enforceability, or application of such laws or regulations in any legal action, hearing, or proceeding related to the agreement or its termination. This ensures that while franchisees receive the protection of applicable laws, Mr. Sandless can still contest those laws if they believe it is necessary.