What is the 'Advertising Fund' for Mr. Sandless franchises?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established a System-wide advertising fund (the "Advertising Fund") for the common benefit of System franchisees. You are required to participate in and contribute monthly to the Advertising
Fund an amount equal to one percent (1%) of your Gross Sales. You must pay the Advertising Fee in the same manner and at the same time as the Royalty Fees due under this Agreement. Any Businesses owned by us or our affiliates will contribute to the Advertising Fund on the same basis as our franchisees. The Advertising Fund will be administered as follows:
- 13.5.1 We will use Advertising Fund contributions, in our sole discretion, to develop, satisfy any and all costs of developing, preparing, producing, directing, administering, conducting, maintaining and distribute national, regional and/or local advertising and to create advertising materials and public relations programs which promote, in our sole judgment, the products and services offered by Mr.
Sandless Businesses and sales and marketing seminars and training programs of every kind and nature..
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the company has established a System-wide advertising fund, referred to as the "Advertising Fund", for the benefit of all franchisees within the Mr. Sandless system. As a franchisee, you are required to participate in this fund by contributing monthly. The contribution amount is equivalent to one percent (1%) of your Gross Sales. This advertising fee is to be paid in the same manner and at the same time as the royalty fees outlined in the Franchise Agreement. Notably, any Mr. Sandless businesses owned directly by the company or its affiliates are also required to contribute to the Advertising Fund on the same terms as franchisees.
The FDD specifies how the Advertising Fund contributions will be used. Mr. Sandless has the sole discretion to use these contributions to cover the costs of developing, preparing, producing, directing, administering, conducting, and maintaining national, regional, and/or local advertising. These funds can also be used to create advertising materials and public relations programs that promote the products and services offered by Mr. Sandless businesses, as well as to support sales and marketing seminars and training programs.
Mr. Sandless retains significant control over the Advertising Fund, including the selection of advertising materials and programs. While the company aims to use the funds in the best interests of the overall system, individual franchisees are not guaranteed to benefit directly or on a pro rata basis from these expenditures. The company may also use the Advertising Fund for public relations, maintaining the Mr. Sandless website (including franchise recruitment), and covering costs associated with customer surveys and quality control programs. Any remaining funds at the end of the fiscal year will be carried over to the next year.