Who determines the payment schedule for Mr. Sandless advertising cooperative contributions?
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 payment schedule for contributions is determined by a majority of the cooperative's members. Franchisees must contribute the agreed-upon amount at the times determined by the majority and adhere to the cooperative's rules.
This means that while Mr. Sandless must approve the formation of the cooperative, the franchisees themselves have control over the financial aspects and rules of the cooperative. This setup allows for a degree of local control and flexibility in advertising efforts, as the franchisees can tailor their contributions and strategies to best suit their specific market conditions.
It's important to note that Mr. Sandless does not have the power to force the formation, change, dissolution, or merger of these cooperatives. The written governing documents of the cooperative will be available for franchisee review. While the cooperatives are not required to prepare financial statements, if they are prepared, they may also be reviewed by franchisees.