How does a Mr. Sandless franchisee receive the Advertising Fund statement?
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)
The 2025 Mr. Sandless Franchise Disclosure Document does not specify how a franchisee receives the Advertising Fund statement. However, it does state that the franchisee must provide a quarterly expenditure report accurately reflecting the franchisee's expenditures in the territory for the preceding quarterly period within ten business days of the Franchisor's request.
While the FDD outlines the franchisee's responsibility to report local advertising expenditures to Mr. Sandless, it does not detail how Mr. Sandless provides franchisees with a statement of the Advertising Fund's activities. The FDD mentions that Mr. Sandless has sole authority to determine the selection of advertising materials and programs and will make a good faith effort to expend Advertising Fund contributions in the general best interests of the System on a national or regional basis.
A prospective Mr. Sandless franchisee should ask the franchisor about the process for receiving Advertising Fund statements, including the frequency of distribution (e.g., monthly, quarterly, annually), the format of the statement (e.g., paper, electronic), and the level of detail provided (e.g., specific expenditures, overall categories). Understanding how the Advertising Fund is managed and reported is crucial for franchisees to assess the value and effectiveness of their contributions.