If the 15th of the month is not a business day, when is the Mr. Sandless royalty fee due?
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, the royalty fee is typically due monthly, no later than the 15th day of each month. However, if the 15th day of the month falls on a non-business day, the royalty payment is due on the next business day. This applies to the 6% of gross sales (or $600, whichever is greater) royalty fee for the Mr. Sandless business.
This clause provides a small amount of flexibility for franchisees, ensuring they are not penalized for late payment when the due date falls on a weekend or holiday. It's important for prospective franchisees to note this detail to avoid any confusion regarding payment deadlines and potential late fees. Franchisees should confirm with Mr. Sandless which days are considered business days for payment purposes.
Understanding the specific due date for royalty payments is crucial for maintaining a good financial standing with Mr. Sandless and avoiding any penalties or disruptions to the franchise agreement. Franchisees should mark their calendars accordingly, taking into account potential non-business days, to ensure timely payments.