What is the population increment used to calculate the Mr. Sandless additional territory fee?

According to Mr. Sandless's 2025 Franchise Disclosure Document, the additional territory fee is calculated based on population increments. Specifically, Mr. Sandless charges $5,000 per 100,000 population for additional territory. This fee is incurred upon signing an amendment to the franchise agreement to add the territory.

For a prospective Mr. Sandless franchisee, this means that expanding their territory will incur a cost directly proportional to the population of the added area. For example, if a franchisee wants to add a territory with a population of 300,000, they would pay an additional territory fee of $15,000 (3 * $5,000). This fee allows franchisees to grow their business within a defined limit, as the FDD states that franchisees can purchase up to a maximum of 4 territories under their Franchise Agreement if they meet the franchisor's qualifications.

It is important for prospective franchisees to consider the population density and potential customer base of any additional territories they are considering purchasing. While a larger population may present a greater market opportunity, it also comes with a higher upfront cost. Franchisees should carefully evaluate the potential return on investment before committing to expanding their territory. This additional territory fee is a fairly standard practice in the franchise industry, as it allows franchisors to capture some of the value created by expanding a franchisee's exclusive operating area.