factual

Under what conditions is the power of attorney granted by a Mr. Sandless franchisee irrevocable?

Mr_Sandless Franchise · 2025 FDD

Answer from 2025 FDD Document

If ever it is asserted that we are the employer, joint employer or co-employer of any of your employees in any private or government investigation, action, proceeding, arbitration or other setting, you irrevocably agree to assist us in defending said allegation, appearing at any venue requested by us to testify on our behalf, participate in depositions, other appearances or preparing affidavits rejecting any assertion that Franchisor is the employer, joint employer or co-employer of any of your employees.

Source: Item 22 — CONTRACTS (FDD page 42)

What This Means (2025 FDD)

According to the 2025 Mr. Sandless Franchise Disclosure Document, if it is asserted that Mr. Sandless is the employer, joint employer, or co-employer of any of the franchisee's employees in any private or government investigation, action, proceeding, arbitration, or other setting, the franchisee irrevocably agrees to assist Mr. Sandless in defending said allegation.

This assistance includes appearing at any venue requested by Mr. Sandless to testify on their behalf, participating in depositions, other appearances, or preparing affidavits rejecting any assertion that Mr. Sandless is the employer, joint employer, or co-employer of any of the franchisee’s employees. This clause ensures that the franchisee actively supports Mr. Sandless's defense against claims of being an employer of the franchisee's staff.

This is a significant obligation for the franchisee. It means they must take concrete steps to support Mr. Sandless's position, potentially involving time, legal consultation, and travel. The franchisee's agreement to this is irrevocable, meaning they cannot withdraw from this commitment once the franchise agreement is in effect. This type of clause is not uncommon in franchise agreements, as franchisors often seek to protect their business model and avoid potential liabilities related to franchisee employees.

Prospective franchisees should carefully consider this obligation and understand the potential implications before entering into a franchise agreement with Mr. Sandless. They may want to consult with legal counsel to fully understand the scope of this requirement and the potential costs and burdens it could impose.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.