What is the intended outcome of the Mr. Sandless Advertising Fund?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
The Advertising Fund is intended to maximize general public recognition in all media of the Proprietary Marks and patronage of Mr. Sandless
Businesses. We will use monies from the Advertising Fund to develop and prepare advertising which we will distribute to our franchisees for their placement in local media. Even though the Advertising Fund will prepare and distribute this advertising, every franchisee in the System may not derive the same or similar benefit from this advertising. We have no obligation to make sure that expenditures of the Advertising Fund in or affecting any geographic area are proportionate or equivalent to payments to the Advertising Fund by franchisees operating in that geographic area, or that any Business will benefit directly or in proportion to the Advertising Fees paid for the development of advertising and marketing materials or the placement of advertising.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–25)
What This Means (2025 FDD)
According to the 2025 FDD, the Mr. Sandless Advertising Fund is intended to maximize general public recognition of the Mr. Sandless brand and increase customer patronage of Mr. Sandless businesses. The funds are to be used to develop and prepare advertising materials for distribution to franchisees for placement in local media.
Mr. Sandless retains full discretion over how the Advertising Fund is spent, including the creative concepts, materials, media used, and their placement. The FDD specifies that the fund may be used for national, regional, and local advertising, publicity, promotion, seminars, training programs, market research, marketing surveys, and the services of advertising or public relations agencies. It can also be used for television, radio, magazine, social media, newspaper, and electronic advertising campaigns, as well as website development, enhancement, and maintenance.
While Mr. Sandless aims to maximize brand recognition and customer patronage through the Advertising Fund, the FDD clarifies that individual franchisees may not experience the same level of benefit from the advertising efforts. Furthermore, Mr. Sandless is not obligated to ensure that advertising expenditures in any specific geographic area are proportionate to the payments made into the Advertising Fund by franchisees operating in that area. This means that a franchisee's contribution to the fund does not guarantee a direct or proportional benefit in their locality.
Mr. Sandless can also reimburse itself from the Advertising Fund for costs related to developing, producing, and distributing advertising materials, as well as for the expenses incurred in collecting the advertising fees, including legal and accounting fees. The FDD states that in the fiscal year ending December 31, 2024, 100% of the Advertising Fund was spent on online advertising on platforms like Google, YouTube, Yahoo, and Bing to generate customer leads for franchisees.