Is the Mr. Sandless Successor Agreement Fee per business?
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 payable upon signing the Successor Franchise Agreement. The FDD specifies that the fee applies to each franchise unit that the franchisee holds.
This means that if a franchisee owns multiple Mr. Sandless franchise units and seeks to renew their franchise agreement for each of those units, they will be required to pay the $1,000 Successor Agreement Fee for each individual business. This could represent a significant cost for franchisees with multiple locations, as the fees would accumulate for each renewal.
Franchisees should factor this cost into their long-term financial planning, especially if they anticipate renewing their franchise agreements for multiple units. It's important to note that all fees listed in Item 6 of the FDD, including the Successor Agreement Fee, are generally nonrefundable unless explicitly stated otherwise.