Under what conditions will Mr. Sandless bill a franchisee for a customer satisfaction survey?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
opens.
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 contr |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, a franchisee may be billed $140 for a customer satisfaction survey under specific conditions. Mr. Sandless reserves the right to conduct a customer satisfaction survey for a franchisee's business. If the results of this survey fall below Mr. Sandless's minimum standards, the franchisee will be billed $140 to cover the cost of the survey.
It is important to note that any survey costs paid by the franchisee are then contributed to the Advertising Fund. This means that while the franchisee is responsible for the initial cost if their business underperforms in the survey, the money is reinvested into the broader advertising efforts of the Mr. Sandless franchise system.
This policy incentivizes franchisees to maintain high levels of customer satisfaction. By setting minimum standards and charging franchisees for surveys that reveal shortcomings, Mr. Sandless encourages consistent service quality across all franchise locations. Prospective franchisees should inquire about the specific minimum standards used in the customer satisfaction surveys to fully understand the expectations and potential costs associated with this policy.