Is a Mr. Sandless franchisee required to participate in the pay-per-click program, or is it optional?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ncurred 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.. We have the sole right to determine contributions and expenditures from the Advertising Fund, or any other advertising program, and sole authority to determine, without limitation, the selection of the advertising materials and programs; provided, however, that we 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. We may use the Advertising Fund to satisfy any and all costs of maintaining, administering, directing, preparing, and producing advertising, including the cost of preparing and producing television, radio, magazine, social media, newspaper and electronic advertising campaigns, direct mail and outdoor billboard advertising;
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
Based on the 2025 Mr. Sandless Franchise Disclosure Document, franchisees are required to participate in the system-wide Advertising Fund. Franchisees must contribute monthly to the Advertising Fund an amount equal to one percent (1%) of their Gross Sales, which is paid in the same manner and at the same time as the Royalty Fees. Mr. Sandless notes that any Businesses owned by them or their affiliates will contribute to the Advertising Fund on the same basis as their franchisees.
The Mr. Sandless Advertising Fund will be used, at their 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 their sole judgment, the products and services offered by Mr. Sandless Businesses and sales and marketing seminars and training programs of every kind and nature. Mr. Sandless may use the Advertising Fund to satisfy any and all costs of maintaining, administering, directing, preparing, and producing advertising, including the cost of preparing and producing television, radio, magazine, social media, newspaper and electronic advertising campaigns, direct mail and outdoor billboard advertising; public relations activities conducting marketing research, employing advertising agencies to assist therein; developing, enhancing and maintaining the Website; and personnel and other departmental costs for advertising that they internally administer or prepare.
Mr. Sandless retains the sole right to determine contributions and expenditures from the Advertising Fund, or any other advertising program, and sole authority to determine, without limitation, the selection of the advertising materials and programs; provided, however, that they 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. Mr. Sandless also has the right to reimburse themselves from the Advertising Fund contributions for such reasonable costs and overhead, if any, as they may incur in activities reasonably related to the direction and implementation of the Advertising Fund. Any monies remaining in the Advertising Fund at the end of any fiscal year shall carry forward to the next fiscal year.
In addition to the Advertising Fund contribution, Mr. Sandless franchisees must spend monthly, throughout the Term of the Agreement, not less than One Thousand Five Hundred Dollars ($1,500) on advertising for the Franchised Business in the Designated Territory. Franchisees must provide a quarterly expenditure report accurately reflecting Franchisee's expenditures in the Territory for the preceding quarterly period within ten (10) business days of Mr. Sandless's request. Certain 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.