In Virginia, when can Mr. Sandless receive the initial franchise fee and other initial payments from franchisees?

According to Mr. Sandless's 2025 Franchise Disclosure Document, the Virginia State Corporation Commission's Division of Securities and Retail Franchising mandates that Mr. Sandless must defer the collection of the initial franchise fee and any other initial payments from franchisees in Virginia. This deferral remains in effect until Mr. Sandless has fulfilled all of its pre-opening obligations as outlined in the franchise agreement.

This requirement protects franchisees by ensuring that Mr. Sandless completes its promised support and preparations before receiving the initial franchise fee. Pre-opening obligations typically include site selection assistance, training, providing operations manuals, and other forms of support necessary to get the franchise location ready for business. By deferring payment until these obligations are met, the franchisee is assured that Mr. Sandless is committed to providing the necessary resources and assistance.

For a prospective Mr. Sandless franchisee in Virginia, this means they will not be required to pay the initial franchise fee upfront. Instead, payment is contingent upon Mr. Sandless fulfilling its pre-opening responsibilities. This arrangement reduces the financial risk for the franchisee, as they are not investing heavily until they see tangible support and progress from the franchisor. It is important for potential franchisees to carefully review the franchise agreement to understand exactly what constitutes Mr. Sandless's pre-opening obligations and to ensure these are clearly defined and measurable.