Under what circumstances can Mr. Sandless withhold consent to a transfer?

According to Mr. Sandless's 2025 Franchise Disclosure Document, Mr. Sandless has broad discretion to withhold or condition consent to any transfer of a franchise. Specifically, Mr. Sandless may withhold or condition consent based on the circumstances of the transfer or for any other reason they deem appropriate.

In addition to this general right to withhold consent, Mr. Sandless outlines specific conditions that must be met for a transfer to be approved. These include the execution of a general release of claims against Mr. Sandless, the buyer's execution of the then-current Single Unit Franchise Agreement and a personal guaranty, payment of a transfer fee ($5,000 per owner for a Mr. Sandless Business transfer or $1,000 per owner), and the buyer's compliance with requirements for corporations or limited liability companies. Mr. Sandless must also approve all shareholders, members, and managers of the buying entity and may require a particular individual to maintain at least 51% ownership and serve as CEO or manager.

Further conditions for transfer approval include the buyer obtaining and maintaining all necessary permits and licenses, compliance with all applicable laws, and ensuring that the purchase price and terms of the transfer are not overly burdensome to the buyer's future operation and performance. Mr. Sandless also requires the franchisee to request that they provide the prospective buyer with the current form of disclosure document. These stipulations ensure that Mr. Sandless maintains control over who becomes a franchisee and that the transfer does not negatively impact the Mr. Sandless brand or system.