How must Mr. Sandless franchisees pay the Advertising Fee?
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)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees must contribute to the Advertising Fund monthly. This contribution is equivalent to one percent (1%) of the franchisee's Gross Sales. The advertising fee must be paid in the same manner and at the same time as the royalty fees.
Mr. Sandless has established the Advertising Fund for the benefit of all franchisees within the system. The franchisor, along with its affiliates, contributes to this fund on the same basis as its franchisees, ensuring a unified approach to advertising.
Mr. Sandless retains sole discretion over how the Advertising Fund contributions are used. These funds are allocated to develop, prepare, produce, administer, and distribute advertising on national, regional, and local levels. The advertising aims to promote the products and services offered by Mr. Sandless businesses, as well as to support sales and marketing seminars and training programs. This includes creating advertising materials and public relations programs to enhance the brand's visibility and market presence.