When will Mr. Sandless defer collection of the Initial Franchise Fees from Illinois franchisees?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
We will defer collection of the Initial Franchise Fees until we have satisfied our pre-opening obligations to you, and you have commenced business operations. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, Mr. Sandless will defer collection of the Initial Franchise Fees from Illinois franchisees until they have satisfied their pre-opening obligations to the franchisee and the franchisee has commenced business operations. This deferral requirement was imposed by the Illinois Attorney General's Office due to Mr. Sandless's financial condition.
This means that a new Mr. Sandless franchisee in Illinois will not have to pay the initial franchise fee upfront. Instead, the payment is delayed until Mr. Sandless has fulfilled their responsibilities in helping the franchisee get started, and the franchisee has actually begun operating their Mr. Sandless business.
This arrangement is designed to protect franchisees, especially given the franchisor's financial condition. By deferring the fee, the franchisee is not paying for services or support that they have not yet received. This could reduce the financial risk for new franchisees in Illinois.