For income tax purposes, how has Mr. Sandless elected to be taxed?

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 then report it on their individual income tax returns.

For a prospective franchisee, this is important because it means that the profits and losses from the Mr. Sandless franchise will be taxed at the individual level rather than at the corporate level. This can have significant implications for the franchisee's overall tax liability, depending on their individual tax situation. It is common for LLCs and S-Corps within the franchise industry to utilize this pass-through taxation structure.

This structure avoids double taxation, which can occur with C-corporations, where profits are taxed at both the corporate level and again when distributed to shareholders. Franchisees should consult with a tax professional to understand the full implications of this tax structure and how it will affect their personal tax obligations.