Does Mr. Sandless waive any claims against the seller by approving the transfer?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
- 21.3.7 Your execution (or your principals' execution, as applicable) of a general release, in a form prescribed by us, of all claims against us and our officers, directors, agents, and employees.
Notwithstanding such release, you shall remain obligated under those provisions of this Agreement that expressly extend beyond the term hereof;
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, as part of the transfer process, the seller (you) is required to execute a general release in a form prescribed by Mr. Sandless. This release covers all claims against Mr. Sandless and its officers, directors, agents, and employees.
Effectively, this means that to transfer your Mr. Sandless franchise, you must sign a document releasing Mr. Sandless from any past, present, or future claims you might have against them. This is a standard practice in franchising to ensure a clean break and avoid future legal disputes related to the previous franchisee's operation.
However, even with this release, the agreement specifies that certain obligations under the original franchise agreement that extend beyond the term of the agreement will still apply to you. This ensures that some responsibilities, such as those related to confidentiality or non-compete clauses that survive termination, remain in effect even after the transfer. Prospective franchisees should carefully review the specific terms of the release and the sections of the franchise agreement that continue to apply after the transfer.