Does the Mr. Sandless Franchise Grant agreement discuss initial franchise fees?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
10. INITIAL AND CONTINUING FEES
10.1 Initial Franchise Fee
In consideration of the execution of this Agreement and our granting to you the franchise covered hereby, you agree to pay to us an Initial Franchise Fee (the "Initial Franchise Fee"), payable upon the execution of this Agreement, which sum shall be deemed fully earned by us upon receipt thereof and is non-refundable. The Initial Franchise Fee to be paid by you hereunder is as set forth on the Data Sheet.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the Franchise Agreement does address the initial franchise fee. Specifically, it states that in consideration for the execution of the agreement and the granting of the franchise, the franchisee must pay Mr. Sandless an initial franchise fee. This fee is payable upon the execution of the agreement. Mr. Sandless considers the fee fully earned upon receipt and it is non-refundable. The exact amount of the initial franchise fee is detailed in the Data Sheet of the Franchise Agreement.
This means that a prospective Mr. Sandless franchisee will need to pay an initial fee to begin the franchising process. This fee compensates Mr. Sandless for granting the franchise and providing access to their system. Because the fee is non-refundable, the franchisee will not get this money back, even if they terminate the agreement.
Franchisees should carefully review the Data Sheet within the Franchise Agreement to understand the specific initial franchise fee required. They should also consider this non-refundable aspect and ensure they are fully committed before signing the agreement and paying the fee. This is a fairly standard practice in franchising, as initial fees are used to cover the franchisor's initial costs of setting up a new franchisee.