What were the total royalty revenues for Mr. Sandless in 2023?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Arrangements-The Company's franchise arrangements generally include a license which provides for payments of initial fees as well as continuing royalties to the Company based upon a percentage of sales. Under this arrangement, franchisees are granted the right to operate a Mr. Sandless franchise business for a specified number of years.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the financial statements for Mr. Sandless do not explicitly state the total royalty revenues for 2023. However, the document does provide information on how Mr. Sandless recognizes revenue, noting that franchise arrangements generally include the payment of initial fees and continuing royalties based on a percentage of sales. These royalties are a key revenue stream for the franchisor.
While the financial statements included in Item 21 are audited by an independent CPA, they do not break down the revenue into specific categories such as royalties, franchise fees, or other sources. Instead, the statements present an overall view of the company's financial position and results of operations. Notes to the financial statements discuss deferred franchise fees and brand development fees, but not the specific amount of royalty revenue recognized during the year.
A prospective franchisee should inquire directly with Mr. Sandless about the royalty revenues for 2023 to gain a clearer understanding of this income stream. Understanding the royalty revenue can help a potential franchisee assess the financial stability and performance of the franchisor, as well as the overall health of the Mr. Sandless franchise system.