How are Gross Sales booked for a Mr. Sandless franchise?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Advertising Fund, which is calculated as one percent (1%) of their Gross Sales. The franchisee must pay this Advertising Fee at the same time and in the same manner as the Royalty Fees. This implies that Gross Sales are a key metric for determining ongoing financial obligations to Mr. Sandless.
Mr. Sandless uses the term "Gross Sales" to calculate the advertising fees. It is important to understand exactly what is included in Gross Sales. For example, are sales taxes included in the calculation of Gross Sales? Are discounts or refunds deducted from Gross Sales?
Prospective franchisees should carefully review the Mr. Sandless Franchise Agreement to fully understand how "Gross Sales" are defined, as this definition directly impacts the amount of advertising fees they will be required to pay. Understanding the components of Gross Sales is crucial for accurate financial planning and forecasting.