What administrative fee does Mr. Sandless charge on supplies ordered through them?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
r the Franchise Starter Kit, invoices and after care packs. All supplies ordered through us are subject to a 10% administrative fee over our cost.
We will derive revenue from sales of items to our franchisees. We may also sell or lease certain other supplies, products and services ourselves and, if we do, we will derive revenue from those sales. To streamline the process, our manufacturer of our supplies collects our 10% service fee on our behalf (see Item 6 In the year ended December 31, 2024, we derived $ 277,344.28 (18%) of our total gross revenues of $ 1,516,126.42 from required franchisee purchases, including convention fees, administration fees, ad fund fees, franch
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, if a franchisee orders supplies through Mr. Sandless, they will be charged a 10% administrative fee over the cost of the supplies. Mr. Sandless may be an approved supplier of equipment, tools, inventory, job tins, and uniforms, but franchisees are not required to purchase these items from them. However, Mr. Sandless is currently the only approved supplier for the Franchise Starter Kit, invoices, and after-care packs.
This means that a Mr. Sandless franchisee will incur an additional 10% charge on the cost of goods if they choose to purchase supplies directly from the franchisor. While franchisees are not obligated to purchase certain items like equipment and uniforms from Mr. Sandless, they must source the Franchise Starter Kit, invoices, and after-care packs exclusively from Mr. Sandless, incurring the 10% administrative fee on those specific items.
In 2024, Mr. Sandless derived $277,344.28, which is 18% of their total gross revenues of $1,516,126.42, from required franchisee purchases. These purchases include convention fees, administration fees, ad fund fees, franchise kit, toll-free number fee, Gmail, materials, and supplies. This indicates that required purchases from the franchisor make up a significant portion of Mr. Sandless's revenue stream.
Prospective franchisees should consider this administrative fee when projecting their operating costs and evaluating the overall profitability of a Mr. Sandless franchise. It is important to understand which supplies must be purchased directly from Mr. Sandless and factor in the additional 10% fee when calculating the cost of those items.