factual

To whom should a Mr. Sandless franchisee send a written request to obtain an accounting of the advertising fund?

Mr_Sandless Franchise · 2025 FDD

Answer from 2025 FDD Document

Item 11 of the Franchise Disclosure Document shall be amended to state that a franchisee may obtain an accounting of the advertising fund as required by COMAR 02.02.08.04B(2), by requesting same in a written request to Franchisor.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)

What This Means (2025 FDD)

According to the 2025 Mr. Sandless Franchise Disclosure Document, a franchisee in Maryland can request an accounting of the advertising fund by submitting a written request to Mr. Sandless. This requirement is specified in an amendment to Item 11 of the FDD, as mandated by COMAR 02.02.08.04B(2). This ensures that Mr. Sandless franchisees in Maryland have a formal mechanism to access information about how advertising funds are being managed.

This provision is particularly important for prospective franchisees in Maryland because it provides a layer of transparency and accountability regarding the use of advertising funds. Advertising funds are typically collected from franchisees to promote the brand and attract customers, so understanding how these funds are spent is crucial for assessing the value and effectiveness of the franchise system. By having the right to request an accounting, franchisees can ensure that their contributions are being used appropriately and in a manner that benefits their business.

It is important to note that this specific requirement applies to Mr. Sandless franchisees in Maryland due to state-specific regulations. Franchisees in other states may not have the same explicit right to request an accounting of the advertising fund through a written request to the franchisor, highlighting the importance of reviewing state-specific addenda in the FDD to understand the full scope of rights and obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.