Under the Mr. Sandless agreement, when must the franchisee pay the franchisor for costs and expenses?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay the Advertising Fee in the same manner and at the same time as the Royalty Fees due under this Agreement.
You agree to pay all of our reasonable attorneys' fees and costs incurred as a consequence of our exercise of the Step-In Rights.
- 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 requirements for continuing franchisees at your expense, as of the date of such subsequent agreement; and
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, franchisees are required to make several payments to Mr. Sandless under specific circumstances. Franchisees must contribute monthly to the Advertising Fund, an amount equal to one percent (1%) of their Gross Sales, payable in the same manner and at the same time as the Royalty Fees.
Additionally, if Mr. Sandless exercises its Step-In Rights to temporarily operate the franchisee's business, the franchisee is responsible for paying all of Mr. Sandless' reasonable attorneys' fees and costs incurred as a result of this action.
Furthermore, if a franchisee seeks a Successor Franchise Agreement, they must pay Mr. Sandless a Successor Agreement Fee of $1,000 per business owned. They must also satisfy the then-current training requirements for continuing franchisees at their expense.