What is the estimated range of costs for purchases from designated or approved sources for a Mr. Sandless franchise?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
We estimate that the costs of your purchases from designated or approved sources, or according to our standards and specification, will range from 40% to 80% of the total cost of establishing your Business, and approximately 5% to 7% of the total cost of operating your Business. We may, in our sole discretion, negotiate purchase
arrangements with suppliers for the benefit of all Mr. Sandless Businesses in the System. There are currently no purchasing or distribution cooperatives in existence for the System. We do not provide any material benefit (such as successor rights or the right to purchase additional territories) based on your purchase of particular products or services or use of designated or approved sources.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the estimated cost for purchases from designated or approved sources during the establishment phase of the business will range from 40% to 80% of the total establishment cost. Additionally, the FDD states that ongoing purchases from these sources are estimated to be approximately 5% to 7% of the total cost of operating the Mr. Sandless business.
Mr. Sandless franchisees are required to purchase or lease products like supplies, branded clothing, inventory, and equipment from designated or approved suppliers when establishing their business. These suppliers may include Mr. Sandless itself. Franchisees must also enter into service agreements with approved vendors as directed by Mr. Sandless. While Mr. Sandless can be an approved supplier for certain items like equipment, tools, inventory, job tins, and uniforms, franchisees are not obligated to purchase these specifically from them. However, Mr. Sandless is currently the only approved supplier for the Franchise Starter Kit, invoices, and after-care packs.
Notably, Mr. Sandless derives revenue from the sale of items to its franchisees. In the year ending December 31, 2024, $277,344.28 (18%) of Mr. Sandless's total gross revenues of $1,516,126.42 came from required franchisee purchases, including convention fees, administration fees, ad fund fees, franchise kit, toll-free number fee, Gmail, materials, and supplies. All supplies ordered through Mr. Sandless are subject to a 10% administrative fee over their cost, which is collected by their manufacturer on their behalf.
Prospective franchisees should carefully consider these requirements and costs, as they can significantly impact the initial investment and ongoing operational expenses. Understanding the specific items that must be purchased from approved suppliers and the associated fees is crucial for accurate financial planning. Additionally, the franchisee should evaluate the potential impact of changes to approved suppliers and product specifications, as these can occur at Mr. Sandless's discretion.