How long is the royalty fee waived for new Mr. Sandless franchisees?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
| 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 |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, new franchisees do not have to pay a royalty fee for the first three months after opening their business. This waiver does not apply to transfers of existing franchises. After this initial period, the royalty fee is 6% of gross sales or $600, whichever is greater, payable monthly, no later than the 15th day of each month.
This royalty fee structure is fairly typical in the franchise industry, where franchisors often charge a percentage of gross sales as a continuing royalty. The three-month royalty waiver can be a significant benefit for new Mr. Sandless franchisees, as it allows them to generate revenue without the immediate burden of royalty payments. This can help with cash flow during the initial startup phase of the business.
It's important to note that the royalty fee is calculated on gross sales, which includes all revenues generated from the business, excluding taxes and refunds. Franchisees should carefully track their gross sales to ensure accurate royalty payments. Also, if the 15th of the month falls on a non-business day, the royalty payment is due on the next business day. Franchisees should factor this into their financial planning and payment schedules.