When are other initial payments due for a Mr. Sandless franchise in North Dakota?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
In the State of North Dakota only, we will defer the payment of the initial franchise fee,, multiunit option fee, and any other initial payment until all of our material pre-opening obligations have been satisfied and until you open your business and it is operating.
However, you must execute the Franchise Agreement prior to looking for a site or beginning training.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, in North Dakota, the payment of the initial franchise fee, multiunit option fee, and any other initial payment is deferred. These payments are not due until all of Mr. Sandless's material pre-opening obligations have been satisfied and the franchisee's business is open and operating.
However, a prospective Mr. Sandless franchisee in North Dakota must execute the Franchise Agreement before looking for a site or beginning training. This means the franchisee is contractually obligated to the Mr. Sandless franchise system before the franchisor fulfills all pre-opening obligations.
This deferral of initial payments until pre-opening obligations are met and the business is operational is a significant benefit for franchisees in North Dakota. It reduces the initial financial burden and risk, ensuring that franchisees only pay these fees once they are ready to start generating revenue. This arrangement aligns the franchisor's interests with the franchisee's success, as Mr. Sandless is incentivized to provide the necessary support to get the business up and running.