What happens to any monies remaining in the Mr. Sandless Advertising Fund at the end of the fiscal year?

According to Mr. Sandless's 2025 Franchise Disclosure Document, any monies remaining in the Advertising Fund at the end of any fiscal year will be carried forward to the next fiscal year. This means that the advertising funds are not distributed back to franchisees or absorbed by Mr. Sandless. Instead, they are retained for future advertising and promotional activities.

This policy is fairly common in franchising, as it allows the advertising fund to accumulate resources for larger or longer-term campaigns. It also provides a buffer to cover unexpected advertising expenses or shortfalls in contributions. Mr. Sandless will prepare an annual statement of contributions and expenditures for the Advertising Fund, available to franchisees within sixty (60) days of the fiscal year's end, upon written request.

While the advertising fund is not independently audited, the availability of the annual statement provides a degree of transparency. Franchisees may want to inquire about the specific plans for the use of advertising funds and how the carry-over balance will be strategically allocated to benefit the Mr. Sandless system.