Is a Mr. Sandless franchisee required to spend more than $1,500 on Grand Opening Advertising?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
g, but not limited to, Facebook, Instagram, X (Twitter), Bluesky, LinkedIn, YouTube, Threads, Tik Tok, blogs, or any other social media and/or networking site without our prior written approval. If feasible, and with our prior written approval, you may do cooperative listings with other System franchisees. You are specifically prohibited from using your, or any other individual's or entity's personal social media accounts to promote the Franchised Business.
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 follow
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, franchisees are not explicitly required to spend a specific amount on grand opening advertising. However, after the initial expenditures outlined in Section 7.2, franchisees must spend at least $1,500 monthly on local advertising throughout the term of the agreement.
This monthly advertising requirement is a significant ongoing expense for Mr. Sandless franchisees. It is important to note that certain costs, such as employee incentive programs, research expenditures, and personnel salaries for advertising meetings, cannot be included in this $1,500 monthly spend unless the franchisor provides prior written approval. This restriction ensures that the advertising funds are used for approved marketing activities that benefit the Mr. Sandless brand.
Franchisees must provide a quarterly expenditure report to Mr. Sandless, detailing their local advertising spending. Failure to meet the minimum monthly advertising requirement or using unapproved marketing materials could result in penalties, as the FDD states that using any unapproved marketing efforts, including online, will result in a fine of $500 per occurrence.
In addition to the local advertising requirement, Mr. Sandless franchisees must also contribute to the Advertising Fund, which is 1% of their gross sales. This fund is used for system-wide advertising and marketing efforts, further emphasizing the importance of advertising and marketing within the Mr. Sandless franchise system.