Does the 'additional funds' estimate for a Mr. Sandless franchise include a salary for the franchisee?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
- Note 11 Additional Funds. Additional funds means the working capital you may need to pay fixed costs, such as minimum advertising expenditures, employees' salaries and miscellaneous vendors, during the first 3 months of business.
This estimate does not include a salary for you nor does it include labor for jobs performed (no jobs means no labor costs).
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the additional funds estimate does not include a salary for the franchisee. The FDD specifies that the additional funds, which range from $5,000 to $15,000, are intended to cover working capital needs during the first three months of operation. These funds are meant to address fixed costs such as minimum advertising expenditures, employee salaries, and payments to miscellaneous vendors.
However, the FDD explicitly states that the additional funds estimate does not include a salary for the franchisee. This means that prospective franchisees should plan to have separate funds available to cover their personal living expenses during the initial months of operation until the business becomes self-sustaining. The estimate also excludes labor costs for jobs performed, clarifying that labor costs are only relevant when employees are hired to perform the work.
This is a common practice in franchising, as many franchisors do not include franchisee salaries in their initial investment estimates. It is crucial for potential Mr. Sandless franchisees to carefully consider their personal financial needs and ensure they have sufficient capital to support themselves and their families during the startup phase. This may involve personal savings, loans, or other sources of income to bridge the gap until the franchise generates enough revenue to provide a reasonable income.