Does the Mr. Sandless Franchise Grant agreement discuss grand opening advertising?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the assistance rendered to you prior to and in connection with your Business' Grand Opening, we will provide continuing consultation and advice as we deem advisable regarding flooring techniques, merchandising and retailing, sales techniques, personnel development and other business, operational and advertising matters which directly relate to your Business. Such assistance will be provided, at our option, by telephone, e-mail, facsimile, periodically through on-site assistance by appropriate personnel of ours, and/or other methods. We will make available to you any and all improvements and changes in our services or business methods to the same extent and in the same manner as they are made available to other franchisees.
13.4 Local Advertising
In addition to the ongoing advertising contributions set forth herein, and following the expenditures set forth in Section 7.2 above, Franchisee shall spend monthly, throughout the Term of this Agreement, not less than One Thousand Five Hundred Dollars ($1,500) on advertising for the Franchised Business in the Designated Territory ("Local Advertising").
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.
13.5 Advertising Fund
We have established a System-wide advertising fund (the "Advertising Fund") for the common benefit of System franchisees. You are required to participate in and contribute monthly to the Advertising
Fund an amount equal to one percent (1%) of your Gross Sales. You must pay the Advertising Fee in the same manner and at the same time as the Royalty Fees due under this Agreement. Any Businesses owned by us or our affiliates will contribute to the Advertising Fund on the same basis as our franchisees. The Advertising Fund will be administered as follows:
- 13.5.1 We will use Advertising Fund contributions, in our sole discretion, to develop, satisfy any and all costs of developing, preparing, producing, directing, administering, conducting, maintaining and distribute national, regional and/or local advertising and to create advertising materials and public relations programs which promote, in our sole judgment, the products and services offered by Mr.
Sandless Businesses and sales and marketing seminars and training programs of every kind and nature..
If you fail to get approval prior to using any piece of marketing in your Business, or use generally any unapproved marketing efforts including online, you will be fined Five Hundred Dollars ($500) per occurrence.
You are not permitted to solicit customers and/or advertise outside the Designated Territory, except to the extent that you have received our prior written approval to do so. Such approval to be granted or denied is at our sole discretion. We may condition our authorization upon your agreement to offer System franchisees that are operating Businesses in contiguous territories the opportunity to participate in, and share the expense of, such solicitation and/or advertising. You may not advertise your Business or any products or services offered by the Business via the Internet without our prior written consent, which may be given or withheld in our sole discretion. Notwithstanding the foregoing, we recognize that certain methods of advertising (such as radio and television) may reach a larger audience outside of your Designated Territory and, in such event and provided you have offer other System franchisees the opportunity to participate in such advertising, you will not be in violation of this Agreement.
We may establish a website that provides information about the System and the Mr. Sandless products and services. We may use part of the monies from the Advertising Fund (described in Section 13.4 below) that we collect under this Agreement to pay or reimburse the costs associated with the development, maintenance and update of such website. We will be the webmaster, either directly or through a third party, and we have sole discretion and control over such website. You are not permitted to maintain an individual website related to the Business, or to establish a uniform resource locator (URL) incorporating
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the franchise agreement does address grand opening advertising. Specifically, Mr. Sandless will provide consultation and advice before and during the franchisee's business grand opening, as deemed advisable, regarding advertising matters.
Mr. Sandless franchisees are obligated to spend a minimum of $1,500 monthly on local advertising within their designated territory throughout the agreement's term, following initial expenditures outlined in Section 7.2. Franchisees must also provide quarterly expenditure reports accurately reflecting their advertising spending. Certain costs, such as employee incentive programs or charitable contributions, are excluded from local advertising expenditures unless approved in advance by Mr. Sandless in writing.
Mr. Sandless has established a System-wide advertising fund where franchisees must contribute 1% of their gross sales, paid in the same manner and at the same time as royalty fees. These contributions will be used at Mr. Sandless's discretion to develop advertising materials and public relations programs to promote Mr. Sandless businesses. Franchisees must get approval prior to using any piece of marketing in their Business, or use generally any unapproved marketing efforts including online, you will be fined Five Hundred Dollars ($500) per occurrence.
Franchisees are restricted from soliciting customers or advertising outside their designated territory without prior written approval from Mr. Sandless. They also cannot advertise their business or its offerings via the Internet without written consent, although some advertising methods like radio and television may reach a broader audience outside the territory without violating the agreement, provided other System franchisees are offered the opportunity to participate in such advertising. Mr. Sandless may establish a website for the System, using funds from the Advertising Fund to cover the costs of development, maintenance, and updates, with Mr. Sandless retaining sole discretion and control over the website.