What is the amount of the Successor Agreement Fee that a Mr. Sandless franchisee must pay?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ior design or offerings of Mr. Sandless Businesses;
- 3.2.7 You execute our then-current form of franchise agreement ("Successor Franchise Agreement"), which may vary materially from the terms of this Agreement and may include, without
limitation, higher royalty and advertising fees. The Successor Franchise Agreement, when executed, will supersede this Agreement in all respects;
- 3.2.8 You pay a successor agreement fee to us in the amount of (a) One Thousand Dollars ($1,000), if the Successor Franchise Agreement relates to a Mr. Sandless Business per business owned (the "Successor Agreement Fee").
- 3.2.9 You satisfy our then-current training
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, a franchisee seeking to renew their franchise agreement must pay a Successor Agreement Fee. This fee is $1,000 per Mr. Sandless business owned. This fee is payable if the franchisee meets the conditions for renewal and wishes to continue operating their Mr. Sandless franchise beyond the initial term.
In addition to the Successor Agreement Fee, the franchisee must also meet other requirements to be eligible for a Successor Franchise Agreement. These include complying with the existing franchise agreement terms, satisfying all monetary obligations to Mr. Sandless and its affiliates, and meeting the then-current training requirements for continuing franchisees at their own expense.
Furthermore, the franchisee must sign a general release in favor of Mr. Sandless and its affiliates, releasing them from any claims related to the original agreement. The new Successor Franchise Agreement may also have terms that differ significantly from the original agreement, potentially including higher royalty and advertising fees. Therefore, franchisees should carefully review the terms of the Successor Franchise Agreement before committing to renewal.