Can the Mr. Sandless Advertising Fund be used for market research?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established an advertising fund ("Advertising Fund") to promote the System, Mr. Sandless and the products and services offered by Mr. Sandless Businesses. You must contribute each month to the Advertising Fund an amount equal to 1% of your Gross Sales. Your contributions to the Advertising Fund are in addition to your local advertising requirement described above. The Advertising Fund will be used for national, regional and local advertising, publicity and promotion relating to our business. We will determine, in our fully unrestricted discretion, the manner in which the Advertising Fund will be spent. Some portion of the Advertising Fund may be used for creative concept production, seminars and training programs, market research, marketing surveys, services of advertising and/or public relations agencies, television, radio, magazine, social media, and newspaper and electronic advertising campaigns and related purposes, as well as for website development, enhancement and maintenance. We have the right to direct all advertising activities with sole discretion over creative concepts, materials and media used, as well as their placement and allocation.
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 can be used for market research. Franchisees must contribute 1% of their gross sales each month to the Advertising Fund, in addition to their local advertising requirements. Mr. Sandless has full discretion over how the Advertising Fund is spent.
The funds may be allocated to national, regional, and local advertising, publicity, and promotion. Specifically, the FDD states that the Advertising Fund may be used for market research, marketing surveys, creative concept production, seminars and training programs, services of advertising and/or public relations agencies, and various advertising campaigns across television, radio, magazine, social media, newspaper, and electronic platforms. The fund can also be used for website development, enhancement, and maintenance.
Mr. Sandless also has the right to use the Advertising Fund for public relations, brand recognition, and the creation and maintenance of a portion of their website to explain the franchise offering and solicit potential franchisees, including indicating "Franchises Available" in any advertisement. The company can reimburse itself from the fund for costs related to developing, producing, and distributing advertising materials, as well as for collecting the Advertising Fee, including legal and accounting fees. In the fiscal year ending December 31, 2024, 100% of the Advertising Fund was spent on online advertising on Google, YouTube, Yahoo, and Bing to generate customer leads for franchise owners.