Can the Mr. Sandless Advertising Fund be used for advertising that is principally a solicitation for franchisees?

According to the 2025 Mr. Sandless Franchise Disclosure Document, while it is not anticipated that the Advertising Fund will be used primarily to solicit new franchisees, Mr. Sandless reserves the right to use the fund for public relations, brand recognition, and the creation and maintenance of a website. A portion of this website can be used to explain the franchise offering and solicit potential franchisees. Additionally, any advertisement may include a notation indicating "Franchises Available."

This means that while the primary intention of the Advertising Fund is to promote Mr. Sandless's services and brand to customers, there is a provision that allows for a portion of the fund to be used for franchise recruitment activities. This could include online advertising, website development, and public relations efforts that indirectly target potential franchisees.

For a prospective franchisee, this implies that the Advertising Fund, to which they contribute 1% of their gross sales, may not be solely focused on driving customer business to their location. A portion of these funds could be used to expand the Mr. Sandless franchise network. However, the FDD indicates that any use of the Advertising Fund for franchise solicitation would likely be a small portion of the overall budget. Franchisees should inquire about the specific allocation of the Advertising Fund between customer-focused advertising and franchise development activities to understand how their contributions will be used.