When is the initial franchise fee due for a Mr. Sandless franchise?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Initial Franchise Fee
You will pay us an Initial Franchise Fee when you sign the Franchise Agreement. The amount of the Initial Franchise Fee will depend on the number of territories you purchase and is calculated as $15,000 for the first territory of approximately 200,000 population and $5,000 for each additional territory of approximately 100,000 population. The minimum initial franchise fee is $15,000 for a single territory purchase of approximately 200,000 population. The maximum initial franchise fee is $30,000 for a 4-territory purchase of approximately 500,000 population.
The initial franchise fee is due in a lump sum at the time the Franchise Agreement is signed, is deemed fully earned upon p
Source: Item 5 — INITIAL FEES (FDD page 9)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the initial franchise fee is due in a lump sum when the Franchise Agreement is signed. This fee is considered fully earned by Mr. Sandless upon payment and is nonrefundable.
The amount of the initial franchise fee varies depending on the number of territories purchased. For the first territory, covering approximately 200,000 in population, the fee is $15,000. Each additional territory, covering approximately 100,000 in population, costs $5,000. The minimum initial franchise fee is $15,000 for a single territory. The maximum initial franchise fee is $30,000 for a 4-territory purchase.
This means a prospective Mr. Sandless franchisee must have the full initial franchise fee amount available at the time of signing the agreement. Since the fee is nonrefundable, it's crucial to carefully consider the investment and conduct thorough due diligence before signing the agreement. This is a fairly standard practice in franchising, as the initial fee compensates the franchisor for granting the franchise rights and providing initial support.