When is the Royalty Fee due each month for a Mr. Sandless franchise?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ial Franchise Fee**
In consideration of the execution of this Agreement and our granting to you the franchise covered hereby, you agree to pay to us an Initial Franchise Fee (the "Initial Franchise Fee"), payable upon the execution of this Agreement, which sum shall be deemed fully earned by us upon receipt thereof and is non-refundable. The Initial Franchise Fee to be paid by you hereunder is as set forth on the Data Sheet.
10.2 Royalty Fee
Each month, you must pay us a royalty fee (the "Royalty Fee"), no later than the fifteenth (15th) day of each calendar month based on the Business being operated pursuant to this Agreement. The Royalty Fee payable hereunder shall be an amount equal to six percent (6%) of the Gross Sales (as defined below) generated in the immediately preceding calendar month with a minimum due of Six Hundred Dollars ($600). "Gross Sales" includes all revenues you generate from all business conducted at or from the Business during the preceding reporting period, including amounts received from the sale of goods and services of any nature whatsoever. Gross Sales does not include the amount of any tax imposed by any federal, state, municipal or other governmental authority on the purchase by the customer, through you, including but not limited to sales tax. You agree to pay such amounts as
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees must pay a royalty fee each month, no later than the 15th day of each calendar month. This fee is based on the business's operations under the Franchise Agreement.
The royalty fee is calculated as 6% of the Gross Sales generated in the immediately preceding calendar month, with a minimum payment of $600. Gross Sales include all revenues from business conducted at or from the Business, including sales of goods and services. However, sales tax collected from customers is excluded from Gross Sales. Gross Sales are accounted for on a cash basis, and refunds or exchanges are deducted from Gross Sales if the related sales were previously included.
Notably, new Mr. Sandless franchisees do not have to pay royalties for the first three months after opening their franchise, excluding transfers. The franchise is considered open after the first paying job. This royalty structure is typical in the franchise industry, where ongoing fees are tied to revenue to align the franchisor's success with the franchisee's performance.