Under what conditions can a Mr. Sandless franchisee divulge or use Confidential Information?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
During the last three fiscal years, we have not had any franchisees sign confidentiality provisions that would restrict their ability to speak openly about their experience with the Mr. Sandless System.
Attachment 4 – Confidentiality and Non-Competition Agreement
- 23.1.7 Promptly return to us, at your expense, the Operations Manual and other materials provided by us or containing Confidential Information or Trade Secrets, or other information which relates to the System or the operation of the Business, including but not limited to computer files, customer data, programs and other materials provided to you by us;
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 28–29)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, Item 20 states that during the last three fiscal years, Mr. Sandless has not had any franchisees sign confidentiality provisions restricting their ability to speak openly about their experience with the Mr. Sandless system. This suggests that franchisees are generally not restricted from divulging or using confidential information based on any confidentiality agreements signed within the last three years.
However, Item 22 references Attachment 4 – Confidentiality and Non-Competition Agreement, indicating that such an agreement exists as part of the franchising documents. Additionally, Item 22 outlines the franchisee's obligations upon termination or expiration of the franchise agreement, including promptly returning the Operations Manual and other materials containing Confidential Information or Trade Secrets.
While franchisees may not have been subject to strict confidentiality agreements in recent years that limit their ability to discuss their experiences, the existence of a standard Confidentiality and Non-Competition Agreement and the obligations regarding confidential information upon termination suggest that there are circumstances where divulging or using such information would be restricted. A prospective franchisee should carefully review the Confidentiality and Non-Competition Agreement (Attachment 4) and seek clarification from Mr. Sandless regarding the specific terms and conditions governing the use and disclosure of confidential information both during and after the franchise term.