Will the Mr. Sandless Advertising Fund be kept separate from the franchisor's other funds?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Businesses owned by us or our affiliates will contribute to the Fund on the same basis as you. The Fund will be kept separate and distinct and will be accounted for separately from our other funds. These funds will not be used to defray any of our general operating expenses, except as described in the paragraph above. Any sums paid to the Fund that are not spent in the year they are collected will carry over to the following year. We will prepare, and furnish to you upon written request, an annual, unaudited statement of funds collected and costs incurred. The Advertising Fund is not audited. In our most recent fiscal year ending December 31, 2024, we spent 100% of the Advertising Fund on Online Advertising on Google and YouTube, Yahoo and Bing for customer leads for our owners.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–25)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the Advertising Fund will be kept separate and distinct from Mr. Sandless's other funds. The funds will be accounted for separately and will not be used to defray any of Mr. Sandless's general operating expenses, except for the costs of developing, producing, and distributing advertising materials, and collecting the Advertising Fee.
For a Mr. Sandless franchisee, this separation of funds provides some assurance that the advertising fees they contribute, which is 1% of gross sales, will be used specifically for advertising and promotional activities to benefit the Mr. Sandless system. Any unspent funds from a given year will be carried over to the following year, ensuring that contributions are not lost.
Mr. Sandless will provide an annual, unaudited statement of funds collected and costs incurred to franchisees upon written request. The 2025 FDD states that in the most recent fiscal year ending December 31, 2024, 100% of the Advertising Fund was spent on online advertising on Google and YouTube, Yahoo and Bing for customer leads for owners. While the fund is not audited, the annual statement offers a degree of transparency regarding how the advertising funds are being utilized.