How often are Mr. Sandless franchisees required to contribute to the Advertising Fund?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established a System-wide advertising fund (the "Advertising Fund") for the common benefit of System franchisees. You are required to participate in and contribute monthly to the Advertising
Fund an amount equal to one percent (1%) of your Gross Sales. You must pay the Advertising Fee in the same manner and at the same time as the Royalty Fees due under this Agreement. Any Businesses owned by us or our affiliates will contribute to the Advertising Fund on the same basis as our franchisees. The Advertising Fund will be administered as follows:
- 13.5.1 We will use Advertising Fund contributions, in our sole discretion, to develop, satisfy any and all costs of developing, preparing, producing, directing, administering, conducting, maintaining and distribute national, regional and/or local advertising and to create advertising materials and public relations programs which promote, in our sole judgment, the products and services offered by Mr.
Sandless Businesses and sales and marketing seminars and training programs of every kind and nature..
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees must contribute to the Advertising Fund on a monthly basis. This contribution is equal to one percent (1%) of the franchisee's Gross Sales. The payment for the Advertising Fee is due at the same time and in the same manner as the Royalty Fees.
Mr. Sandless, or its affiliates, will also contribute to the Advertising Fund on the same basis as the franchisees for any businesses they own. The funds collected are used at the discretion of Mr. Sandless to cover the costs of advertising, marketing, and public relations programs at the national, regional, and local levels. These programs aim to promote the products and services offered by Mr. Sandless businesses, as well as sales and marketing seminars and training programs.
While franchisees contribute to the Advertising Fund, they may not directly or proportionally benefit from its expenditures. Mr. Sandless has the sole right to determine contributions and expenditures from the Advertising Fund. At the end of each fiscal year, any remaining funds in the Advertising Fund will be carried over to the next fiscal year. Mr. Sandless will prepare an annual statement of contributions and expenditures for the Advertising Fund, which will be available to franchisees within 60 days of the fiscal year's end upon written request.