If Mr. Sandless conducts customer surveys, who initially pays for these surveys?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
We may periodically assist franchises to maintain high quality standards through customer surveys, customer interviews, and other similar initiatives ("Surveys"). The cost of these programs will be paid by the Advertising Fund; however, the cost of these programs may be charged directly to you if your results of a Survey fall below System established minimum standards for Surveys. Any fees charged to and paid by you will be contributed to the Advertising Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–25)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the initial cost of customer surveys, interviews, and similar initiatives is covered by the Advertising Fund. These surveys are used to help franchises maintain high-quality standards.
However, a Mr. Sandless franchisee may be directly charged for these survey programs if their results fall below the minimum standards established by the system. Any fees charged to a franchisee due to poor survey results will then be contributed back into the Advertising Fund.
This means that while the Advertising Fund, which is contributed to by all franchisees at a rate of 1% of gross sales each month, initially pays for the surveys, franchisees have a direct incentive to maintain high standards to avoid being charged directly for the cost of the surveys. This system is designed to ensure quality control and encourage franchisees to meet or exceed customer expectations, with the ultimate goal of enhancing the Mr. Sandless brand and customer satisfaction.