In North Dakota, when will a Mr. Sandless franchisee pay any other initial payment?
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 Mr. Sandless's 2025 Franchise Disclosure Document, in North Dakota, the payment of the initial franchise fee, multiunit option fee, and any other initial payment will be deferred until all of Mr. Sandless's material pre-opening obligations have been satisfied and until the franchisee opens their business and it is operating.
However, a prospective Mr. Sandless franchisee in North Dakota must execute the Franchise Agreement before looking for a site or beginning training. This means that while the payment is deferred, the franchisee is still bound by the agreement terms during the pre-opening phase.
This deferral of initial payments is a significant benefit for franchisees in North Dakota, as it reduces the upfront financial burden and aligns the payment with the actual commencement of business operations. It also provides some assurance that Mr. Sandless will fulfill their pre-opening obligations before receiving payment.