What is the deadline for a Mr. Sandless franchisee to provide evidence of Grand Opening Advertising expenditures?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
13.4.1 Within ten (10) business days of Franchisor's request, Franchisee shall provide a quarterly expenditure report accurately reflecting Franchisee's expenditures in the Territory for the preceding quarterly period. The following costs and expenditures incurred by Franchisee shall not be included in Franchisee's expenditures on Local Advertising for purposes of this Section, unless approved in advance by Franchisor in writing: (i) incentive programs for employees or agents of Franchisee; (ii) research expenditures; (iii) salaries and expenses of any of Franchisee's personnel to attend advertising meetings, workshops or other marketing activities; (iv) charitable, political or other contributions or donations.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
Based on the 2025 Mr. Sandless Franchise Disclosure Document, franchisees are required to submit a quarterly expenditure report reflecting their advertising spend in the territory. This report must be provided within ten (10) business days of Mr. Sandless's request. This applies to the ongoing local advertising that franchisees must conduct, spending no less than $1,500 monthly.
This means that while there isn't a specific deadline tied to Grand Opening advertising, franchisees should be prepared to document and report their local advertising expenditures to Mr. Sandless on a quarterly basis when requested. The FDD specifies that this reporting is for the 'preceding quarterly period,' implying that franchisees need to maintain accurate records of their advertising activities and costs.
It is important to note that certain costs and expenditures are excluded from what counts as 'Local Advertising' unless pre-approved by Mr. Sandless in writing. These exclusions include incentive programs for employees, research expenditures, salaries/expenses for personnel attending advertising meetings, and charitable/political contributions. Franchisees should seek written approval from Mr. Sandless for any non-standard advertising expenditures they wish to include in their report to ensure compliance and avoid potential issues.
Therefore, while the FDD does not explicitly state a deadline for providing evidence of Grand Opening advertising expenditures, the quarterly reporting requirement for local advertising implies that franchisees should maintain records of all advertising expenses, including those related to the Grand Opening, and be prepared to submit them within ten business days of Mr. Sandless's request.