How is the additional territory fee paid to Mr. Sandless?
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 paid when incurred upon signing an amendment to add territory. The fee is $5,000 per 100,000 population. A Mr. Sandless franchisee has the option to purchase additional territory to a maximum of 4 territories under their Franchise Agreement if they meet Mr. Sandless's qualifications.
This means that if a franchisee wants to expand their exclusive territory, they must pay $5,000 for each additional 100,000 in population they wish to add to their territory. This fee is paid at the time the amendment to the franchise agreement is signed, formalizing the expansion of the territory. The franchisee must also meet Mr. Sandless's qualifications to be approved for additional territory.
It is important for a prospective Mr. Sandless franchisee to consider the costs associated with expanding their territory. While expanding the territory can lead to increased revenue potential, it also requires a significant upfront investment in the form of the additional territory fee. Franchisees should carefully evaluate their financial situation and growth plans before deciding to purchase additional territory.