Upon expiration or termination of the Mr. Sandless franchise agreement, will any monetary amount be assigned to the franchisee for goodwill associated with their use of the Intellectual Property?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
cause" for termination within the meaning ascribed to that term
by any applicable law or regulation. We shall not be precluded from contesting the validity, enforceability or application of such laws or regulations in any action, hearing or proceeding relating to this Agreement or the termination of this Agreement.
23. YOUR OBLIGATIONS UPON TERMINATION
23.1 Your Obligations
Upon termination or expiration of this Agreement, you shall:
- 23.1.1 Promptly pay to us any sums due and owing, and to other persons or entities sums which may result in a claim of liability to us;
- 23.1.2 Immediately cease using the Proprietary Marks, Copyrights and Confidential Information and refrain from referencing any past association with us;
- 23.1.3 Immediately discontinue all advertising under the names "Mr. Sandless" or any similar name, and (iii) de-identify the service vehicle(s) and any office location;
- 23.1.4 Promptly take such action as may be required to cancel all registrations relating to the use of any of the Proprietary Marks, including, but not limited to, any electronic address, domain name, search engine or website that associates you with us, the Business or the Proprietary Marks (if we allowed you to establish same), as well as any trade name or assumed name registrations, and will not directly or indirectly at any time or in any manner identify any premises or any business as a franchise, or yourself as a franchisee, of ours; and you shall not, in any manner or for any purpose, use any of the Proprietary Marks or any colorable imitation thereof You shall notify the telephone company and all listing agencies of the termination or expiration of your right to use any telephone number and any classified or other telephone directory listings associated with such names and to authorize the transfer of same to us or our new franchisee. You acknowledge that, as between us and you, we have the sole rights to and interest in all , social media accounts, electronic mail addresses, telephone numbers, and other listings associated with the Proprietary Marks. You will provide us, on execution, with an undated assignment of the telephone number to us, in the form annexed hereto as Attachment 5;
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
Based on the 2025 Mr. Sandless Franchise Disclosure Document, the franchisee will not receive any monetary amount for goodwill associated with the use of Mr. Sandless's intellectual property upon termination or expiration of the franchise agreement. Instead, upon termination of the Franchise Agreement, the franchisee is obligated to cease using Mr. Sandless's Proprietary Marks, Copyrights, and Confidential Information and must refrain from referencing any past association with Mr. Sandless. The franchisee must also discontinue all advertising under the Mr. Sandless name and de-identify any service vehicles or office locations.
Furthermore, the franchisee is required to take action to cancel all registrations related to the use of Mr. Sandless's Proprietary Marks, including electronic addresses, domain names, search engines, or websites that associate the franchisee with Mr. Sandless. The franchisee must also notify the telephone company and listing agencies of the termination of their right to use any telephone number or directory listings associated with the Mr. Sandless name and authorize the transfer of these to Mr. Sandless or a new franchisee.
Mr. Sandless retains sole rights to all social media accounts, email addresses, telephone numbers, and other listings associated with the Proprietary Marks. The franchisee must also promptly destroy or surrender all signs, stationery, letterhead, forms, and other printed materials containing any of the Proprietary Marks. Additionally, the franchisee must return the Operations Manual and other materials containing Confidential Information or Trade Secrets to Mr. Sandless. These obligations highlight that the franchisee does not build equity in the Mr. Sandless brand itself, and all goodwill remains the property of the franchisor.