In North Dakota, when will a Mr. Sandless franchisee pay the multiunit option 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 Mr. Sandless's 2025 Franchise Disclosure Document, a franchisee in North Dakota will not be required to pay the multiunit option fee until certain conditions are met. Specifically, Mr. Sandless defers the payment of the multiunit option fee until all of their material pre-opening obligations have been satisfied and until the franchisee opens their business and it is operating.
However, it is important to note that the franchisee must still 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 terms of the agreement during the pre-opening phase.
This deferral of payment is specific to North Dakota. Prospective franchisees should confirm with Mr. Sandless what constitutes 'material pre-opening obligations' to fully understand the conditions for payment. This arrangement benefits the franchisee by reducing the initial financial burden and aligning the payment with the commencement of business operations.