When 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:
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 equal 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.
This means that a Mr. Sandless franchisee's obligation to pay the advertising fee is directly tied to their gross sales and mirrors the payment schedule for their royalty fees. The funds collected are intended for system-wide advertising efforts to benefit all franchisees.
Mr. Sandless retains sole discretion over how the Advertising Fund is used, aiming to promote the brand's products and services nationally, regionally, or locally. While franchisees contribute to this fund, they may not directly or proportionally benefit from specific advertising expenditures. The franchisee should clarify with Mr. Sandless the exact due dates for both Advertising and Royalty Fees to ensure timely payments.