In North Dakota, when will a Mr. Sandless franchisee pay the initial franchise fee?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
In the State of North Dakota only, we will defer the payment of the initial franchise fee,, multiunit option fee, and any other initial payment until all of our material pre-opening obligations have been satisfied and until you open your business and it is operating.
However, you must execute the Franchise Agreement prior to looking for a site or beginning training.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, franchisees in North Dakota will have the payment of their initial franchise fee, multiunit option fee, and any other initial payments deferred. This deferral lasts until Mr. Sandless has satisfied all of its material pre-opening obligations and the franchisee's business is open and operating.
However, a critical condition is that the franchisee must execute the Franchise Agreement before starting the process of looking for a site or beginning training. This means that while the payment is deferred, the franchisee is still bound by the terms of the agreement during the pre-opening phase.
This arrangement is particularly beneficial for prospective franchisees in North Dakota as it reduces the upfront financial burden and risk. It ensures that franchisees only pay the initial fees once Mr. Sandless has fulfilled their obligations and the business is ready to operate. This type of arrangement is not typical in the franchise industry, where initial fees are usually required upfront.