When are payments for licenses and permits due for a Mr. Sandless franchise?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
YOUR ESTIMATED INITIAL INVESTMENT
| Type of expenditure | Amount | Method of Payment | When due | To Whom Payment Is To Be Made | |
|---|---|---|---|---|---|
| Initial Franchise | $15,000 | $24,000 | Lump sum | Upon execution of the Franchise Agreement | Us |
| Fee 1 | |||||
| Grand Opening | $1,500 | $1,500 | As negotiated | First month of operation |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, payments for licenses and permits are due before opening the business. The estimated cost for these licenses and permits ranges around $200, which is to be paid as a lump sum to government agencies.
It is important to note that the FDD advises prospective franchisees to investigate all required licenses and permits, along with their associated costs, before purchasing the franchise. This proactive approach can help avoid unexpected expenses and ensure compliance with local regulations.
This up-front payment is a fairly standard practice in franchising, as licenses and permits are typically required to legally operate the business. Failing to obtain the necessary licenses and permits can result in fines, penalties, or even the closure of the business. Therefore, it is crucial for franchisees to budget for these costs and ensure timely payment.