Does the manufacturer of Mr. Sandless supplies collect the 10% service fee on behalf of Mr. Sandless?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
r the Franchise Starter Kit, invoices and after care packs. All supplies ordered through us are subject to a 10% administrative fee over our cost.
We will derive revenue from sales of items to our franchisees. We may also sell or lease certain other supplies, products and services ourselves and, if we do, we will derive revenue from those sales. To streamline the process, our manufacturer of our supplies collects our 10% service fee on our behalf (see Item 6 In the year ended December 31, 2024, we derived $ 277,344.28 (18%) of our total gross revenues of $ 1,516,126.42 from required franchisee purchases, including convention fees, administration fees, ad fund fees, franch
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the manufacturer of Mr. Sandless supplies does collect a 10% service fee on behalf of Mr. Sandless. This fee is applied to all supplies ordered through Mr. Sandless.
For a prospective franchisee, this means that when ordering supplies through Mr. Sandless, the manufacturer will add a 10% administrative fee to the cost of the supplies. This fee is collected by the manufacturer but is ultimately for Mr. Sandless's benefit.
In the year ending December 31, 2024, Mr. Sandless derived $277,344.28, which is 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 indicates that franchisee purchases are a significant revenue stream for Mr. Sandless.