Does Mr. Sandless maintain a National Advertising Fund after the business opens?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
After your Business opens, we will:
- Provide consultation and advice concerning the management and operation of the Business as we deem necessary and appropriate. (Franchise Agreement, Section 8)
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- Provide, in our discretion, continuing education training programs or seminars for previously trained franchisees, Designated Managers, Technical Managers and employees and require you and/or your employees to attend and successfully complete these programs or seminars. (Franchise Agreement, Section 4.2)
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- Maintain a National Advertising Fund, as described below. (Franchise Agreement, Section 13.4)
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- Review your local advertising materials to determine if they comply with our specifications. (Franchise Agreement, Section 13.5)
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- Provide additional training programs, seminars and/or franchisee conventions, in our sole discretion. (Franchise Agreement, Sections 4.2 and 4.3)
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, Mr. Sandless does maintain a National Advertising Fund after the business opens. Franchisees are required to contribute to this fund.
Each month, franchisees must contribute an amount equal to 1% of their gross sales to the Advertising Fund. This contribution is in addition to the franchisee's local advertising requirements. The Advertising Fund is used for national, regional, and local advertising, publicity, and promotion related to Mr. Sandless businesses. Mr. Sandless has full discretion over how the Advertising Fund is spent, including for creative concept production, seminars and training programs, market research, advertising agencies, and various advertising campaigns across different media.
Mr. Sandless may use the Advertising Fund for public relations, brand recognition, website maintenance, and even to solicit potential franchisees. The company can also reimburse itself from the fund for costs associated with developing advertising materials and collecting advertising fees, including legal and accounting expenses. Businesses owned by Mr. Sandless or its affiliates contribute to the fund on the same basis as franchisees. The funds are kept separate and accounted for distinctly from other company funds, and any unspent amounts are carried over to the following year. Mr. Sandless will provide an annual, unaudited statement of funds collected and costs incurred upon written request. For 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.