Is the Mr. Sandless Successor Agreement Fee per franchise unit?
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. Then monthly, not later than the 15th day of each month | Royalties are payable on your Gross Sales for the previous calendar month. If the 15th day of any month is not a business day, then payment is due on the next business day. See Note 1. |
| Advertising Fund | 1% of Gross Sales | Payable at the same time and in the same manner as the Royalty Fee | You must contribute to our Advertising Fund (described in Item 11) |
| Required Minimum Expenditure for Local Marketing and Advertising | Minimum $1,500 per month. | As incurred. | Payable to third parties. All advertising must be pre-approved by us. See footnote 2. |
| Additional Territory Fee | $5,000 per 100,000 population | As incurred upon signing an Amendment to add Territory | If you meet our qualifications, you have the option to purchase additional territory to a maximum of 4 territories under your Franchise Agreement. |
| Surveys | $140 | On demand | If we conduct a customer satisfaction survey for your Business and the results of the survey are below our minimum standards, we have the right to bill you for the cost of the survey. Any survey costs paid by you are contributed to the Advertising Fund |
| Transfer Fee | $5,000 per Owner | Upon transfer | The transfer fee includes all franchise units you own. |
| Successor Agreement Fee | $1,000 per Business | Upon signing the Successor Franchise Agreement | The Successor Agreement Fee is per franchise unit you hold. |
| Interest on Overdue Amounts | 18% per annum or the highest lawful interest rate for commercial transactions, whichever is less | As incurred | See Note 3. Interest accrues from the original due date |
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 indeed per franchise unit. The fee is $1,000 per Business and is due upon signing the Successor Franchise Agreement. This means that if a franchisee owns multiple Mr. Sandless units and seeks to renew their franchise agreement for each, they will incur this fee for each individual unit.
This fee structure has significant implications for franchisees with multiple units. For example, a franchisee owning three Mr. Sandless businesses would pay $3,000 to renew the franchise agreements for all three locations. This could represent a substantial cost, especially if the franchisee is nearing the end of their current agreement term for several units simultaneously.
Franchisees should factor this per-unit fee into their long-term financial planning and consider the timing of their franchise agreement renewals. Understanding this cost is crucial for assessing the overall profitability and sustainability of operating multiple Mr. Sandless franchise locations.