What do 'additional funds' refer to in the context of a Mr. Sandless franchise?
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). .
In preparing these estimates we relied upon our experience and the experience of our Affiliate in operating similar businesses since 2005.
These are only estimates and your costs may vary.
We have not included any estimate for rent or leasehold improvements, because we assume that you will operate your Business from a home-based office. You will need approximately 100 square feet of dedicated space for your home office. If you choose to rent an office from which to operate your Business, you will incur rent, security deposits and additional utility costs that we cannot estimate.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, 'additional funds' are defined as the working capital a franchisee may need to cover fixed costs during the initial three months of operation. These fixed costs include minimum advertising expenditures, employee salaries, and payments to miscellaneous vendors. The estimated range for these additional funds is between $5,000 and $15,000. This estimate does not include a salary for the franchisee or labor costs for jobs performed.
Mr. Sandless bases these estimates on their experience and the experience of their affiliate in operating similar businesses since 2005. However, the FDD clearly states that these are only estimates and the actual costs may vary. The document assumes that franchisees will operate their businesses from a home-based office, requiring approximately 100 square feet of dedicated space. If a franchisee chooses to rent an office, they will incur additional costs for rent, security deposits, and utilities, which are not included in the estimate.
Prospective Mr. Sandless franchisees should carefully consider these 'additional funds' as a crucial part of their initial investment. It is important to create a detailed budget that accounts for potential variations in these costs. Franchisees should also factor in their personal salary and potential labor costs if they plan to hire employees. Understanding and planning for these expenses is essential for ensuring a smooth start and sustainable operation of the Mr. Sandless franchise.