Where is the income for Mr. Sandless reported for tax purposes?

According to Mr. Sandless's 2025 Franchise Disclosure Document, the company has elected to be taxed as a limited liability company (LLC) for income tax purposes. This means that the company itself does not pay income taxes directly. Instead, the income generated by Mr. Sandless "passes through" to its members.

For a prospective franchisee, this is important because the profits or losses from the Mr. Sandless franchise will be reported on the individual income tax returns of the members. The members will be responsible for paying income taxes on their share of the company's profits, regardless of whether those profits are actually distributed to them. This is a common tax structure for LLCs and other pass-through entities.

It is important for potential franchisees to consult with a tax advisor to understand the specific tax implications of investing in a Mr. Sandless franchise, as individual circumstances may vary. The tax obligations will depend on the franchisee's individual tax bracket, other sources of income, and any applicable deductions or credits.