What happens if a Mr. Sandless franchisee fails to meet minimum advertising standards?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Required Minimum Expenditure for Local Marketing and Advertising | Minimum $1,500 per month. | As incurred. | Payable to third parties. All advertising must be pre-approved by us. See footnote 2. |
| Advertising Fund | 1% of Gross Sales | Payable at the same time and in the same manner as the Royalty Fee | You must contribute to our Advertising Fund (described in Item 11) |
| Failure to Obtain our Approval or Consent for Marketing | $500 | On de |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees are required to spend a minimum of $1,500 per month on local marketing and advertising. This expenditure is payable to third parties, and all advertising materials must receive pre-approval from Mr. Sandless. If a franchisee fails to obtain approval or consent for marketing materials, they may incur a fine of $500.
Mr. Sandless also requires franchisees to contribute 1% of their gross sales to the Advertising Fund, payable at the same time and manner as the royalty fee. Additionally, franchisees must provide Mr. Sandless with a quarterly report and documentation of their local advertising expenditures upon request.
Furthermore, the FDD states that franchisees must indemnify Mr. Sandless and its affiliates against all claims, obligations, liabilities, and damages arising out of the operation of their business, including their advertising. This indemnification covers all damages and costs, including attorney's fees, incurred in the defense of any action. This means that if a franchisee's advertising leads to any legal claims against Mr. Sandless, the franchisee is responsible for covering those costs.