When is the Successor Franchise Agreement signed 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 Franchise Agreement is signed when the Successor Agreement Fee is due. The fee is $1,000 per Business. This fee applies for each franchise unit that the franchisee holds.
In franchising, a successor agreement typically extends the term of the original franchise agreement. It allows the franchisee to continue operating their Mr. Sandless business after the initial term expires. The fee covers Mr. Sandless's administrative costs and continued support.
Prospective Mr. Sandless franchisees should factor this fee into their long-term financial planning. They should also discuss the terms and conditions of the Successor Franchise Agreement with Mr. Sandless to fully understand their rights and obligations upon renewal.