Is the royalty fee waived for Mr. Sandless franchise transfers?
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 not waived for franchise transfers. The standard royalty fee for a Mr. Sandless business is 6% of Gross Sales or $600, whichever is greater. This fee is typically not charged for the first 3 months after opening a new location. However, the FDD explicitly states that this initial royalty fee waiver does not apply to franchise transfers.
This means that a new franchisee purchasing an existing Mr. Sandless location will be required to pay the full royalty fee from day one. This is an important consideration for anyone looking to acquire an existing Mr. Sandless franchise, as it will impact their initial costs and profitability.
Franchise transfer fees are common in the franchise industry, and the Mr. Sandless franchise agreement includes a transfer fee of $5,000 per owner, payable upon the transfer of the franchise. However, the royalty fee is separate from the transfer fee and is an ongoing expense based on gross sales.