How is the additional territory fee for Mr. Sandless calculated?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
opens.
ITEM 6 OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee – Mr. Sandless Business | 6% of Gross Sales or $600, whichever is greater | No Royalty Fee for the first 3 months after opening, transfers not included. Then monthly, not later than the 15th day of each month | Royalties are payable on your Gross Sales for the previous calendar month. If the 15th day of any month is not a business day, then payment is due on the next business day. See Note 1. |
| Advertising Fund | 1% of Gross Sales | Payable at the same time and in the same manner as the Royalty Fee | You must contribute to our Advertising Fund (described in Item 11) |
| Required Minimum Expenditure for Local Marketing and Advertising | Minimum $1,500 per month. | As incurred. | Payable to third parties. All advertising must be pre-approved by us. See footnote 2. |
| Additional Territory Fee | $5,000 per 100,000 population | As incurred upon signing an Amendment to add Territory | If you meet our qualifications, you have the option to purchase additional territory to a maximum of 4 territories u |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the fee for additional territory is $5,000 per 100,000 population. This fee is incurred upon signing an amendment to add territory to the franchise agreement.
For a prospective Mr. Sandless franchisee, this means that if they wish to expand their territory after the initial agreement, they will need to pay this additional fee. The cost will depend on the population of the new territory they wish to add. For example, if a franchisee wants to add a territory with a population of 300,000, the additional territory fee would be $15,000 (3 * $5,000).
The FDD also states that franchisees have the option to purchase additional territory, up to a maximum of 4 territories, if they meet Mr. Sandless's qualifications. This provides an opportunity for franchisees to grow their business, but it also requires a significant financial investment for each expansion. Franchisees should carefully consider the potential return on investment and the population density of the new territory before deciding to expand.