Can the Mr. Sandless Advertising Fund be used for public relations related to the brand?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
While we do not anticipate that any part of Advertising Fund contributions will be used for advertising which is principally a solicitation for franchisees, we reserve the right to use the Advertising Fund for public relations or recognition of our brand, for the creation and maintenance of a portion of our Website to be used to explain the franchise offering and solicit potential franchisees, and to include a notation in any advertisement indicating "Franchises Available."
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.
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 can be used for public relations. Mr. Sandless has the right to use the Advertising Fund for public relations or recognition of their brand. Additionally, the Advertising Fund may be used for the services of advertising and/or public relations agencies.
Mr. Sandless franchisees are required to contribute to the Advertising Fund an amount equal to 1% of their gross sales each month. These contributions are in addition to the franchisee's local advertising requirements. The Mr. Sandless Advertising Fund is intended to maximize general public recognition in all media of the Proprietary Marks and patronage of Mr. Sandless Businesses.
For the fiscal year ending December 31, 2024, Mr. Sandless spent 100% of the Advertising Fund on online advertising on Google and YouTube, Yahoo, and Bing for customer leads for their owners. The fund is kept separate and distinct from Mr. Sandless's other funds, and any unspent sums are carried over to the following year. Mr. Sandless will provide an annual, unaudited statement of funds collected and costs incurred upon written request.