When is the Mr. Sandless successor agreement 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. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the successor agreement fee is due upon signing the Successor Franchise Agreement. The fee is $1,000 per Mr. Sandless business. This fee is charged for each franchise unit the franchisee holds.
This means that if a franchisee decides to renew their franchise agreement with Mr. Sandless, they will need to pay this fee at the time they sign the new agreement. It is important for prospective franchisees to factor this cost into their long-term financial planning, especially if they anticipate renewing their franchise agreement in the future.
Unlike some other fees which may be negotiable or vary, the Mr. Sandless FDD specifies that the fees outlined in Item 6 are imposed uniformly on all franchisees, suggesting this fee is consistently applied across the franchise system.