When is the Mr. Sandless royalty fee due?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee – Mr. Sandless Business | 6% of Gross Sales or $600, whichever is greater | No Royalty Fee for the first 3 months after opening, transfers not included. Then monthly, not later than the 15th day of each month | Royalties are payable on your Gross Sales for the previous calendar month. If the 15th day of any month is not a business day, then payment is due on the |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the royalty fee is due monthly, specifically not later than the 15th day of each month. This royalty is calculated as 6% of Gross Sales or $600, whichever is greater. The FDD specifies that royalties are based on the previous calendar month's Gross Sales. If the 15th of the month falls on a non-business day, the payment is due on the next business day.
Notably, new Mr. Sandless franchisees do not have to pay a royalty fee for the first three months after opening their business, though this excludes transfers. This initial grace period can provide some financial relief as the franchisee establishes their business.
It is important for prospective franchisees to understand how Gross Sales are defined, as this directly impacts the royalty fee calculation. According to Note 1, Gross Sales includes all revenues generated from business conducted at or from the Business during the preceding calendar month, including amounts received from the sale of goods and services. Gross Sales are booked on a cash basis. Sales relating to items or services for which the full purchase price has been refunded or the item exchanged shall be excluded from Gross Sales at the time of refund or exchange, if these sales have previously been included in Gross Sales.