Are Mr. Sandless franchisees exempt from paying the royalty fee during a specific period?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee – Mr. Sandless Business | 6% of Gross Sales or $600, whichever is greater | No Royalty Fee for the first 3 months after opening, transfers not included. Then monthly, not later than the 15th day of each month | Royalties are payable on your Gross Sales for the previous calendar month. If the 15th day of any month is not a business day, then payment is due on the |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees are exempt from paying the royalty fee for a limited time. Specifically, Mr. Sandless franchisees do not have to pay the royalty fee for the first three months after opening their franchise. However, this exemption does not apply to franchise transfers.
The standard royalty fee for a Mr. Sandless franchise is 6% of Gross Sales or $600, whichever is greater. After the initial three-month grace period, the royalty fee is due monthly, no later than the 15th day of each month. If the 15th of the month falls on a non-business day, the payment is due on the next business day.
This initial royalty fee exemption can be a significant benefit for new Mr. Sandless franchisees, allowing them to retain more of their initial revenue to cover startup costs and build their business during the critical early months. However, franchisees should carefully note that this exemption does not apply if they are acquiring an existing Mr. Sandless franchise through a transfer.