How often will Mr. Sandless prepare a statement of contributions and expenditures for the Advertising Fund?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Any monies remaining in the Advertising Fund at the end of any fiscal year shall carry forward to the next fiscal year.
- 13.5.4 We will prepare on an annual basis, and will have available for you within sixty (60) days of the end of the fiscal year, a statement of contributions and expenditures for the Advertising Fund.
The statement will be presented to you upon your written request.
The Advertising Fund is not required to be independently audited.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, Mr. Sandless will prepare a statement of contributions and expenditures for the Advertising Fund on an annual basis. This statement will be available within sixty (60) days of the end of the fiscal year.
This means that franchisees can request to see how the Advertising Fund, which they contribute to monthly at a rate of one percent (1%) of their Gross Sales, is being managed and spent. The statement provides transparency regarding the financial activity of the fund.
However, the statement will only be presented upon a franchisee's written request. The Advertising Fund is not required to be independently audited, which means the statement's accuracy is not verified by an outside accounting firm. Franchisees should be aware that while they have a right to request this statement, they should also consider the limitations of the information provided, as it is not independently audited.