What is the minimum monthly Royalty Fee due for a Mr. Sandless franchise?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ial Franchise Fee**
In consideration of the execution of this Agreement and our granting to you the franchise covered hereby, you agree to pay to us an Initial Franchise Fee (the "Initial Franchise Fee"), payable upon the execution of this Agreement, which sum shall be deemed fully earned by us upon receipt thereof and is non-refundable. The Initial Franchise Fee to be paid by you hereunder is as set forth on the Data Sheet.
10.2 Royalty Fee
Each month, you must pay us a royalty fee (the "Royalty Fee"), no later than the fifteenth (15th) day of each calendar month based on the Business being operated pursuant to this Agreement. The Royalty Fee payable hereunder shall be an amount equal to six percent (6%) of the Gross Sales (as defined below) generated in the immediately preceding calendar month with a minimum due of Six Hundred Dollars ($600). "Gross Sales" includes all revenues you generate from all business conducted at or from the Business during the preceding reporting period, including amounts received from the sale of goods and services of any nature whatsoever. Gross Sales does not include the amount of any tax imposed by any federal, state, municipal or other governmental authority on the purchase by the customer, through you, including but not limited to sales tax. You agree to pay such amounts as
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees must pay a monthly royalty fee. This royalty fee is 6% of the gross sales generated in the immediately preceding calendar month. However, there is a minimum royalty fee due of $600.
Gross sales include all revenues generated from the business, including the sale of goods and services. Gross sales do not include taxes imposed by governmental authorities on customer purchases. The royalty fee is due no later than the fifteenth day of each calendar month. Gross sales are booked on a cash basis, and sales for which a full refund has been provided are excluded from gross sales.
Notably, new Mr. Sandless franchisees do not have to pay a royalty fee for the first three months after opening, with transfers being excluded from this benefit. A franchisee is considered open after their first paying job. This initial royalty-free period can help new franchisees manage their initial investment and build their business before the ongoing royalty obligations begin.