Who decides who will administer a Mr. Sandless advertising cooperative?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
There are presently no advertising councils or local or regional advertising cooperatives. If an advertising cooperative is formed by our franchisees and approved by us, you must agree to contribute to the cooperative the amount agreed upon by a majority of the members of the cooperative, to pay that amount to the advertising cooperative and the times agreed upon by the majority, and abide by the cooperative's rules. The cooperative will determine who will administer the cooperative. The written governing documents will be available for review by you. Cooperatives need not prepare annual or periodic financial statements, but if they are prepared, they may be reviewed by you. We will not have the power to require cooperatives to be formed, changed, dissolved or merged.
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, if an advertising cooperative is formed by franchisees and approved by Mr. Sandless, the cooperative itself will determine who will administer it. Franchisees must contribute the amount agreed upon by a majority of the members and abide by the cooperative's rules.
Mr. Sandless does not have the power to require cooperatives to be formed, changed, dissolved, or merged. The written governing documents of the cooperative will be available for franchisee review. While cooperatives are not required to prepare financial statements, any that are prepared may also be reviewed by franchisees.
Currently, there are no advertising councils or local or regional advertising cooperatives. If Mr. Sandless approves the formation of a cooperative, the decision-making power regarding its administration rests with the cooperative members themselves, not with Mr. Sandless.