Is there a per-business Successor Agreement Fee for Mr. Sandless?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ior design or offerings of Mr. Sandless Businesses;
- 3.2.7 You execute our then-current form of franchise agreement ("Successor Franchise Agreement"), which may vary materially from the terms of this Agreement and may include, without
limitation, higher royalty and advertising fees. The Successor Franchise Agreement, when executed, will supersede this Agreement in all respects;
- 3.2.8 You pay a successor agreement fee to us in the amount of (a) One Thousand Dollars ($1,000), if the Successor Franchise Agreement relates to a Mr. Sandless Business per business owned (the "Successor Agreement Fee").
- 3.2.9 You satisfy our then-current training
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, a Successor Agreement Fee is required to be paid to Mr. Sandless. Specifically, if a franchisee wishes to enter into a new franchise agreement at the end of their initial term, they must pay Mr. Sandless a Successor Agreement Fee. This fee is One Thousand Dollars ($1,000) per Mr. Sandless business owned.
In addition to the Successor Agreement Fee, the franchisee must also meet certain conditions to be eligible for a Successor Franchise Agreement. These conditions include being in compliance with all terms and conditions of the current agreement, satisfying all monetary obligations, and complying with all other agreements with Mr. Sandless. The franchisee must also provide written notice of their intention to renew the Franchise Agreement within a specified timeframe, maintain possession of the business premises, and effectuate any changes to reflect Mr. Sandless's current image.
Furthermore, the franchisee must meet Mr. Sandless's then-current training requirements for continuing franchisees at their own expense and sign a general release in favor of Mr. Sandless and its affiliates. The Successor Franchise Agreement itself may vary materially from the original agreement and may include higher royalty and advertising fees. This means that renewing the franchise may come with increased costs and obligations for the franchisee.