How does a Mr. Sandless franchisee obtain the Advertising Fund statement?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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..
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
Based on the 2025 Mr. Sandless Franchise Disclosure Document, the document does not specify how a franchisee can obtain an Advertising Fund statement. The FDD does mention the franchisee's obligation to contribute to the Advertising Fund, which is set at one percent (1%) of Gross Sales, payable in the same manner and at the same time as the Royalty Fees.
The document outlines how Mr. Sandless manages the Advertising Fund, stating that the franchisor has sole discretion in using the contributions to develop advertising materials and public relations programs. These programs aim to promote the products and services offered by Mr. Sandless businesses, including sales and marketing seminars and training programs. The franchisor may also use the Advertising Fund to cover costs related to advertising, such as television, radio, magazine, social media, newspaper, and electronic campaigns, as well as website maintenance and marketing research.
While the FDD details the use and management of the Advertising Fund, it does not provide information on how a franchisee can access a statement or report detailing the fund's income and expenses. A prospective franchisee should request information about the process for accessing the Advertising Fund statement from the franchisor.