What is the successor agreement fee for a Mr. Sandless franchise?
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 $1,000 per business. This fee is due upon signing the Successor Franchise Agreement and is charged for each franchise unit the franchisee holds.
In the franchise world, a successor agreement is essentially a renewal agreement that allows a franchisee to continue operating their business under the Mr. Sandless brand after the initial franchise term expires. The fee covers Mr. Sandless's administrative costs associated with preparing and processing the new agreement.
For a prospective Mr. Sandless franchisee, this means that when the time comes to renew their franchise agreement, they should budget $1,000 for each unit they operate. This fee is in addition to any other requirements for renewal, such as meeting performance standards or updating the business to current brand standards. It is important to note that this fee is nonrefundable, as stated in Item 6 of the FDD.