How is 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 income generated by Mr. Sandless passes directly through to its members, who are the owners or franchisees.

As a result, the income is not taxed at the company level. Instead, it is reported on the individual income tax returns of the members. This is a common tax structure for small businesses and franchises, as it avoids double taxation (taxation at both the corporate level and the individual level).

For a prospective Mr. Sandless franchisee, this means that the profits they earn from their franchise will be reported as income on their personal tax returns. They will be responsible for paying income taxes and self-employment taxes on these earnings. It is important for franchisees to consult with a tax professional to understand their tax obligations and to ensure they are properly reporting their income.