What is the cost of the Successor Agreement Fee per Mr. Sandless franchise unit?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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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. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the Successor Agreement Fee is $1,000 per business unit. This fee is due upon signing the Successor Franchise Agreement. The FDD specifies that this fee applies to each franchise unit that the franchisee holds.
In practical terms, this means that if a Mr. Sandless franchisee decides to renew their franchise agreement for another term, they will be required to pay $1,000 for each franchise unit they operate at the time of renewal. This fee covers the administrative costs and legal work associated with drafting and executing the new agreement.
It is important for prospective franchisees to factor this potential cost into their long-term financial planning. Renewal fees are a common practice in franchising, but the amount can vary significantly between different franchise systems. Understanding the terms and conditions of the Successor Agreement Fee is crucial for making informed decisions about the future of the Mr. Sandless franchise.