Year Business Began: 1967
Franchising Since: 1983
Headquarters: Owings Mills, Maryland
Estimated Number of Units: 265
Franchise Description: The franchisor is Sandler Systems, Inc. (SSI). The franchisor grants franchises providing the right to operate a Sandler business devoted to a distinctive style of training persons and organizations in the fields of sales and sales management, which includes coaching, consulting, goal setting and achievement, self-awareness, motivation, personal development, relationship management, leadership development, negotiations, public speaking, template and playbook development, and related business development services as it relates to the fields of sales and sales management; and also methods of teaching these subjects through seminars and workshops. Franchisees must operate according to standards and procedures designated by the franchisor within a specific territory.
Training Overview: Initial Training, Part I is generally conducted every two months for 9 to 10 days. Initial Training, Part II is a two-day session, generally conducted three times a year. Initial Training, Part I is held at SSI's home office or at a hotel conference facility in the Baltimore area. Initial Training, Part II is held at a hotel conference facility in the Baltimore area, or elsewhere in the United States, as determined by the franchisor. Initial training sessions are open only to franchisees or, in cases where the franchisee will not be involved in the day-to-day operation of the business, managers who have signed the Manager’s Non-Disclosure and Non-Compete Agreement. The franchisor may train employees in separate sessions designed for employees only, and may conduct these sessions less frequently than initial training sessions. The franchisor, at its discretion, may require franchisees to attend training at any time during the term of the Franchise Agreement if the franchisor reasonably believes that additional training is necessary. Franchisees may, at other times during the term of the contract, attend optional training programs that SSI provides.
Territory Granted: Franchisees will be granted a non-exclusive right to solicit clients within a specific geographic area. Typically, a territory is defined by a group of contiguous U.S. Postal ZIP Code Sectional Areas, generally representing an entire state, as determined by the franchisor, but it reserves the right to determine the size of the territory based on metrics such as business potential, demographics and population size specific to the franchisee’s Sandler business. The minimum population size of the target demographic group within the territory is determined on a case-by-case basis depending on the results of demographic research.
Obligations and Restrictions: Franchisees (if they are an entity, then the owners of the entity) must devote full business time and attention to the operation of the franchise, and cause the franchise to be effectively and efficiently operated. Franchisees may not operate any other business without the franchisor’s prior written consent. Franchisees are not permitted to offer, sell or promote any other programs or materials except programs and materials obtained from SSI or its approved vendors.
Term of Agreement and Renewal: The length of the initial franchise term is five years. Three renewal terms of five years each available, if requirements are met.
Financial Assistance: Neither the franchisor nor any affiliate of SSI, either directly or indirectly, offers any financing arrangements to franchisees. The franchisor does not receive any direct or indirect payments or other consideration for placing financing, nor does it guarantee a franchisee’s obligations to third parties.
Name of Fee | Low | High |
---|---|---|
Initial Franchise Fee | $49,000 | $49,000 |
Travel and Living Expenses While Training | $1,000 | $1,900 |
Real Estate and Improvements | Varies | |
Office Furnishings and Equipment | $12,675 | $30,750 |
Office Supplies | $250 | $450 |
Miscellaneous Opening Cost | $400 | $1,000 |
Insurance | $8,500 | $14,000 |
Additional Funds (3 Months) | $30,000 | $50,000 |
ESTIMATED TOTAL (excluding real estate costs) | $101,825 | $147,100 |
Type of Fee | Amount |
---|---|
Monthly Service Charge | $1,200 |
Monthly Royalty | 8% to 3% of gross revenues, depending on the cumulative amount of gross revenues received during each calendar year. |
Marketing Fee | Currently, $480.69 per month. |
Newsletter Subscription Fee | $50 per month. |
Transfer Fee | $12,500, or 12% of the total sale price, whichever amount is greater. |
Transfer of Franchise to Corporation or Other Entity for Convenience of Ownership | $1,000 |
Late Payment Fee | 1.5% of the past due amount. |
Renewal Fee | $1,000 |
Training Fee | $300 per session. |
Certification Fees | Currently, there is no fee charged for franchisees or their employees, or travel/lodging required. |
E-Mail Service Fee | Currently, $584 per year, plus a one-time set-up fee of $100 per email address. |
CRM or Performance Metrics Software Fee | Currently, there is no fee charged. |
Participation in SSI's Internet Web Site Program Fees | Currently $840 per year Sitelet URL, per year (includes the cost of the SSL certificate). |
Conference Registration Fee | Currently, up to $1,250 for a client, up to $1,000 for a franchisee owner, and up to $200 for a guest, per conference. |
Attorneys' Fees and Costs | Varies. |
Indemnification | Varies. |
Inspection and Audit Expenses and Fees | Varies. |
Underreporting Fee | 10% of the amount underreported. |
Failure to Comply with Approved Supplier or Product Delivery Requirements Fee | $25,000, or $500 per person per instance, whichever amount is greater. |
Rescission of Credit Card Charge Fee | $2,500 |
Failure to Submit Client List Fee | $25,000, or 10% of gross revenues during the prior calendar year, whichever amount is greater. |
The above information has been compiled from the FDD of Sandler Training. Year of FDD: 2022.