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What must a prospective Mr. Sandless franchisee in North Dakota execute before looking for a site?

Mr_Sandless Franchise · 2025 FDD

Answer 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 prospective franchisee in North Dakota must execute the Franchise Agreement before looking for a site or beginning training. However, Mr. Sandless will defer the payment of the initial franchise fee, multiunit option fee, and any other initial payment until all of their material pre-opening obligations have been satisfied and until the franchisee opens their business and it is operating.

This means that while the franchisee is obligated to sign the agreement upfront, they do not have to pay any initial fees until Mr. Sandless has fulfilled their pre-opening responsibilities, and the business is up and running. This could be beneficial for franchisees as it reduces the initial financial burden and risk, ensuring that they only pay after certain milestones are achieved.

This arrangement provides some financial security for the franchisee, aligning the franchisor's interests with the franchisee's success in the initial stages. It is important for prospective franchisees to carefully review the Franchise Agreement and understand Mr. Sandless's pre-opening obligations to ensure both parties are clear on the conditions before the business opens.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.