What is the fine for a Mr. Sandless franchisee underreporting revenue or sales reports?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Underreporting Revenue or Sales Reports Fine | $2,500 per job not reported | On demand | Payable if you are found concealing income from us |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, a franchisee will be fined for underreporting revenue or sales reports. Specifically, if Mr. Sandless finds that a franchisee is concealing income, the franchisee must pay a fine.
The fine for underreporting revenue or sales reports is $2,500 per job not reported. This fine is due on demand, meaning Mr. Sandless can request immediate payment upon discovering the discrepancy. This penalty is in addition to any other remedies that Mr. Sandless may pursue.
This fee underscores the importance of accurate and transparent financial reporting in the Mr. Sandless franchise system. Franchisees should maintain meticulous records and ensure full compliance with reporting requirements to avoid incurring this substantial fine. Concealing income not only leads to this fine but also violates the franchise agreement, potentially leading to further penalties or termination of the agreement.