Is the Mr. Sandless Successor Agreement Fee a one-time fee or recurring?
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 a one-time fee. The table in Item 6 specifies that the fee is $1,000 per Business and is due upon signing the Successor Franchise Agreement. The remarks section clarifies that this fee applies per franchise unit held by the franchisee.
This means that if a franchisee decides to renew their franchise agreement with Mr. Sandless, they will be required to pay this $1,000 fee for each franchise unit they own at the time of renewal. This fee is separate from other fees like royalty fees or advertising fees, and it is specifically tied to the renewal of the franchise agreement.
As the fee is due only when signing a Successor Franchise Agreement, it is not a recurring fee in the same way as monthly royalties or advertising contributions. Instead, it is a one-time payment that a franchisee must make to continue operating their Mr. Sandless business under a new franchise agreement term.