Why does Mr. Sandless defer collection of the Initial Franchise Fees from Illinois franchisees?

According to the 2025 Mr. Sandless Franchise Disclosure Document, Mr. Sandless defers the collection of Initial Franchise Fees from Illinois franchisees due to a requirement imposed by the Illinois Attorney General's Office. This deferral is directly linked to Mr. Sandless's financial condition.

For a prospective franchisee in Illinois, this means they will not be required to pay the initial franchise fee until Mr. Sandless has fulfilled its pre-opening obligations as outlined in the franchise agreement. Furthermore, the franchisee must have commenced business operations before the fee is collected. This arrangement provides a level of financial security for the franchisee, ensuring that Mr. Sandless is committed to providing the necessary support and resources before receiving the initial franchise fee.

This deferral is a specific measure implemented to protect franchisees, given Mr. Sandless's financial situation. It ensures that franchisees are not paying upfront fees without seeing tangible progress and support from the franchisor. Prospective franchisees should carefully review the specific pre-opening obligations outlined in the franchise agreement to fully understand the conditions that must be met before the initial franchise fee becomes due.