Under what conditions might Mr. Sandless conduct a customer satisfaction survey for a franchisee?
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. 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, Mr. Sandless may conduct a customer satisfaction survey for a franchisee's business. If the results of this survey are below Mr. Sandless's minimum standards, the franchisee will be billed $140 for the cost of the survey. Any survey costs paid by the franchisee are then contributed to Mr. Sandless's Advertising Fund.
This means that a Mr. Sandless franchisee could incur an unexpected expense of $140 if their customer satisfaction scores are not up to par with the brand's expectations. It is important to note that the FDD does not define what constitutes "minimum standards," so a prospective franchisee should clarify this with Mr. Sandless during their due diligence. Understanding the criteria used to evaluate customer satisfaction is crucial for managing the business effectively and avoiding this fee.
While customer satisfaction surveys are a common practice in franchising to maintain brand consistency and quality, the financial implication of a substandard score is a notable aspect of the Mr. Sandless franchise agreement. Franchisees should proactively monitor and manage customer feedback to ensure they meet Mr. Sandless's standards and avoid the survey fee. Furthermore, the fact that the survey costs are contributed to the Advertising Fund suggests that Mr. Sandless uses these funds to improve overall customer satisfaction and brand reputation.