What is the standard Royalty Fee for a Mr. Sandless business?

According to Mr. Sandless's 2025 Franchise Disclosure Document, the standard royalty fee is 6% of gross sales or $600, whichever is greater. This fee is paid monthly, no later than the 15th day of each month, for 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. Gross sales include all revenues generated from the business, excluding taxes collected on customer purchases, and are booked on a cash basis. Refunds or exchanges are excluded from gross sales at the time they occur, provided these sales were previously included.

Notably, Mr. Sandless franchisees do not pay any royalty fees for the first three months after opening their business, with the exception of transfers. This initial royalty-free period can provide a significant financial benefit to new franchisees as they establish their customer base and operations. However, it's important to note that this waiver does not apply to franchise transfers, meaning that franchisees who acquire an existing Mr. Sandless business will be subject to the royalty fee from the outset.

In addition to the royalty fee, Mr. Sandless franchisees must also contribute 1% of gross sales to the Advertising Fund, payable at the same time and in the same manner as the royalty fee. Franchisees are also required to spend a minimum of $1,500 per month on local marketing and advertising, payable to third parties, and all advertising must be pre-approved by Mr. Sandless. These additional expenses should be considered when evaluating the overall cost of operating a Mr. Sandless franchise.