When is the additional territory fee for Mr. Sandless due?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 additional territory fee is due as incurred upon signing an amendment to add territory. The fee for additional territory is $5,000 per 100,000 population.
This means that if a franchisee wants to expand their territory, they will need to pay Mr. Sandless $5,000 for each additional 100,000 people included in the expanded territory. This fee is payable at the time the franchisee and Mr. Sandless sign an amendment to the franchise agreement that officially adds the new territory.
Mr. Sandless allows franchisees to purchase additional territory up to a maximum of 4 territories under their Franchise Agreement, provided they meet the franchisor's qualifications. This provides an opportunity for franchisees to grow their business, but it also requires a significant financial investment for each expansion.