Under what condition can a Mr. Sandless franchisee employ a Designated Manager?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
use of the concept, process or improvement.
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
We prefer granting franchises to individuals who will operate the Business on a day-to-day basis. With our prior written consent, you may employ a full-time designated manager (the "Designated Manager") who will work at least 40 hours per week and who will supervise the day-to-day operations of the Business. The Designated Manager must satisfactorily complete our training program. However, the appointment of a Designated Manager shall not relieve you of any duties or obligations under the Franchise Agreement. You may also hire a Technical Manager to oversee the Business' physical operations and the work performed under the Proprietary Marks. There is no substitute for your supervision of the Business, so if you employ a Designated Manager, you must still provide general supervision and be fully conversant with the affairs of the Business. Either you or a Designated Manager must devote full time and effort to the operation of the Business.
All partners in a limited partnership, shareholders in a corporate franchisee, or members and managers in a limited liability company franchisee must sign a Guaranty Agreement under which each person agrees to personally abide by all of the terms and conditions of the Franchise Agreement, and guarantees to us performance of all obligations under the Franchise Agreement. Our form of Guaranty Agreement is attached to the Franchise Agreement as Attachment 3.
You (including your partners, officers, directors, shareholders, as applicable), your employees, and their respective heirs, successors and assigns are prohibited from using and/or disclosing any Confidential Information in any manner other than as we permit and must sign Confidentiality and Non-Competition Agreements in the form attached to the Franchise Agreement as Attachment 4.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 29–30)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, Mr. Sandless prefers franchisees who operate the business on a day-to-day basis. However, a franchisee can employ a full-time Designated Manager with Mr. Sandless's prior written consent. This Designated Manager must work at least 40 hours per week and supervise the business's daily operations.
The Designated Manager is required to satisfactorily complete Mr. Sandless's training program. Even with a Designated Manager in place, the franchisee is still responsible for general supervision and must be knowledgeable about the business's operations. Either the franchisee or the Designated Manager must devote full time and effort to the business.
Mr. Sandless does not need an application for approval of a proposed Designated Manager, but Mr. Sandless retains the right to prohibit the employment of a particular manager if that person has demonstrated a lack of honesty or ability to manage the business. Each manager must be trained in a manner satisfactory to Mr. Sandless before assuming managerial responsibilities, and Mr. Sandless may require that any proposed manager complete their initial training program, at the franchisee's expense, before the manager may assume managerial responsibilities. The franchisee must also perform a background check of prospective employees before hiring them, and only hire employees that have passed the required background check, and otherwise meet the criteria provided in the Operations Manual. The Designated Manager is not required to have an equity interest in the Business.