On what amount are Mr. Sandless royalties based?
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 under your Franchise Agreement. |
| Surveys | $140 | On demand | If we conduct a customer satisfaction survey for your Business and the results of the survey are below our minimum standards, we have the right to bill you for the cost of the survey. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the royalty fee is based on Gross Sales. Specifically, Mr. Sandless franchisees must pay a royalty fee equal to 6% of Gross Sales or $600, whichever is greater.
Gross Sales includes all revenues generated from the business, including amounts received from the sale of goods and services. Gross Sales does not include the amount of any tax imposed by any federal, state, municipal or other governmental authority based on purchases by your customers. Gross Sales shall be booked on a cash basis. Sales relating to items or services for which the full purchase price has been refunded or the item exchanged shall be excluded from Gross Sales at the time of refund or exchange, if these sales have previously been included in Gross Sales.
Mr. Sandless does not charge a royalty fee for the first 3 months after opening, with the exception of transfers. The royalty fee is paid monthly, not later than the 15th day of each month for the previous calendar month's Gross Sales. If the 15th day of any month is not a business day, then payment is due on the next business day.