Under what conditions can the license agreement for the Mr. Sandless Proprietary Marks be terminated?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Under a March 26, 2010 license agreement, Daniel J. Prasalowicz licensed to us the right to use the Proprietary Marks and to sublicense them to System franchisees. The license agreement also allows our Affiliate, Mr. Sandless, Inc., the right to use the Proprietary Marks without the ability to sub-license. Under the license
agreement, we and Mr. Prasalowicz each have the right to terminate this license agreement on 30 days' notice. Upon termination of this license agreement, Mr. Prasalowicz will assume all of the rights and obligations of ours regarding the Proprietary Marks. There are no other agreements that significantly limit our rights to use or license the use of the Proprietary Marks in a manner that is material to the franchise.
Source: Item 13 — TRADEMARKS (FDD pages 26–28)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the license agreement, dated March 26, 2010, grants Mr. Sandless Franchise LLC the right to use and sublicense the Proprietary Marks to its franchisees. The agreement also allows Mr. Sandless, Inc., an affiliate, to use the Proprietary Marks, but without the ability to sublicense them.
The critical point for prospective franchisees is that both Mr. Sandless Franchise LLC and Daniel J. Prasalowicz (the owner of the marks) each have the right to terminate the license agreement. The termination can be enacted by either party providing a 30-day notice.
Upon termination of the license agreement, all rights and obligations pertaining to the Proprietary Marks that Mr. Sandless Franchise LLC holds will revert back to Mr. Prasalowicz. This arrangement ensures that control of the Mr. Sandless Proprietary Marks remains with the owner, even if the license agreement with the franchising entity is terminated. This clause protects the brand's integrity and future use of its trademarks.