What is the interest rate charged on overdue amounts owed to Mr. Sandless?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee – Mr. Sandless Business | 6% of Gross Sales or $600, whichever is greater | No Royalty Fee for the first 3 months after opening, transfers not included. Then monthly, not later than the 15th day of each month | Royalties are payable on your Gross Sales for the previous calendar month. If the 15th day of any month is not a business day, then payment is due on the next business day. See Note 1. |
| Advertising Fund | 1% of Gross Sales | Payable at the same time and in the same manner as the Royalty Fee | You must contribute to our Advertising Fund (described in Item 11) |
| Required Minimum Expenditure for Local Marketing and Advertising | Minimum $1,500 per month. | As incurred. | Payable to third parties. All advertising must be pre-approved by us. See footnote 2. |
| Additional Territory Fee | $5,000 per 100,000 population | As incurred upon signing an Amendment to add Territory | If you meet our qualifications, you have the option to purchase additional territory to a maximum of 4 territories under your Franchise Agreement. |
| Surveys | $140 | On demand | If we conduct a customer satisfaction survey for your Business and the results of the survey are below our minimum standards, we have the right to bill you for the cost of the survey. Any survey costs paid by you are contributed to the Advertising Fund |
| Transfer Fee | $5,000 per Owner | Upon transfer | The transfer fee includes all franchise units you own. |
| Successor Agreement Fee | $1,000 per Business | Upon signing the Successor Franchise Agreement | The Successor Agreement Fee is per franchise unit you hold. |
| Interest on Overdue Amounts | 18% per annum or the highest lawful interest rate for commercial transactions, whichever is less | As incurred | See Note 3. Interest accrues from the original due date until payment is made in full |
| Type of Fee | Amount |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, overdue amounts are subject to an interest rate. Specifically, Mr. Sandless charges an interest of 18% per annum or the highest lawful interest rate for commercial transactions, whichever is less. This interest accrues from the original due date until the payment is made in full.
For a prospective franchisee, this means that if any payments to Mr. Sandless are not made on time, interest charges will be applied to the outstanding balance. The interest rate will either be 18% per year, or the maximum rate allowed by law for commercial transactions, whichever is lower. Franchisees should be aware of the due dates for all fees and payments to avoid incurring these interest charges.
It is important to note that the interest rate may vary depending on the state. For example, in California, the highest interest rate allowed by law for late payments is 10% annually. Therefore, if a Mr. Sandless franchisee is operating in California, the interest rate charged on overdue amounts would be capped at 10% per annum.