Do Mr. Sandless businesses owned by the franchisor or its affiliates contribute to the Advertising Fund?
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 the 2025 Mr. Sandless Franchise Disclosure Document, Mr. Sandless businesses that are owned by the company or its affiliates do contribute to the Advertising Fund. These businesses contribute on the same basis as franchisees. The Advertising Fund is kept separate from Mr. Sandless' other funds and will be accounted for separately. The funds are not used to defray general operating expenses, except for costs related to developing, producing, and distributing advertising materials, and collecting the Advertising Fee. Any unspent funds are carried over to the following year.
Mr. Sandless will provide an annual, unaudited statement of funds collected and costs incurred to franchisees upon written request. As of the most recent fiscal year ending December 31, 2024, 100% of the Advertising Fund was spent on online advertising on platforms like Google, YouTube, Yahoo, and Bing to generate customer leads for franchise owners.
This arrangement ensures that company-owned locations support the advertising efforts that benefit the entire Mr. Sandless system. Franchisees can request an annual statement to see how the funds are being used, providing some transparency in the advertising fund's management.