How does Mr. Sandless' manufacturer collect the 10% service fee?

According to Mr. Sandless' 2025 Franchise Disclosure Document, the manufacturer of Mr. Sandless supplies collects a 10% service fee on behalf of the company. This is done to streamline the process of collecting this fee. In 2024, Mr. Sandless derived $277,344.28, which represents 18% of their total gross revenues of $1,516,126.42, from required franchisee purchases. These purchases include convention fees, administration fees, ad fund fees, franchise kit, toll-free number fee, Gmail, materials, and supplies.

This arrangement means that franchisees do not directly pay the 10% service fee to Mr. Sandless. Instead, it is included in the cost of supplies purchased from the manufacturer. This could simplify the payment process for franchisees, as it consolidates the fee into the cost of goods. However, it also means that franchisees need to be aware of this additional cost when budgeting for their supply purchases.

It is important for prospective franchisees to understand that Mr. Sandless benefits financially from these required purchases. The 18% of gross revenues derived from these purchases is a significant portion of the company's income. Franchisees should consider this when evaluating the overall cost and potential profitability of a Mr. Sandless franchise. They should also inquire about the specific items subject to this 10% administrative fee and how the prices compare to alternative suppliers, even though they are required to use the approved manufacturer.