Is participation in marketing programs required for Mr. Sandless franchisees?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
etworking Websites, including, but not limited to, Facebook, Instagram, X (Twitter), Bluesky, LinkedIn, YouTube, Threads, Tik Tok, blogs, or any other social media and/or networking site without our prior written approval. If feasible, and with our prior written approval, you may do cooperative listings with other System franchisees. You are specifically prohibited from using your, or any other individual's or entity's personal social media accounts to promote the Franchised Business.
13.4 Local Advertising
In addition to the ongoing advertising contributions set forth herein, and following the expenditures set forth in Section 7.2 above, Franchisee shall spend monthly, throughout the Term of this Agreement, not less than One Thousand Five Hundred Dollars ($1,500) on advertising for the Franchised Business in the Designated Territory ("Local Advertising").
13.4.1 Within ten (10) business days of Franchisor's request, Franchisee shall provide a quarterly expenditure report accurately reflecting Franchisee's expenditures in the Territory for the preceding quarterly period. The following costs and expenditures incurred by Franchisee shall not be included in Franchisee's expenditures on Local Advertising for purposes of this Section, unless approved in advance by Franchisor in writing: (i) incentive programs for employees or agents of Franchisee; (ii) research expenditures; (iii) salaries and expenses of any of Franchisee's personnel to attend advertising meetings, workshops or other marketing activities; (iv) charitable, political or other contributions or donations.
13.5 Advertising Fund
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.. We have the sole right to determine contributions and expenditures from the Advertising Fund, or any other advertising program, and sole authority to determine, without limitation, the selection of the advertising materials and programs; provided, however, that we will make a good faith effort to expend Advertising Fund contributions in the general best interests of the System on a national or regional basis. We may use the Advertising Fund to satisfy any and all costs of maintaining, administering, directing, preparing, and producing advertising, including the cost of preparing and producing television, radio, magazine, social media, newspaper and electronic advertising campaigns, direct mail and outdoor billboard advertising; public relations activities conducting marketing research, employing advertising agencies to assist therein; developing, enhancing and maintaining the Website; and personnel and other departmental costs for advertising that we internally administer or prepare. Nevertheless, you acknowledge that neither you nor any other System franchisees will benefit directly or on a pro rata basis from such expenditures.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees are required to participate in system-wide advertising programs. Specifically, Mr. Sandless franchisees must contribute to the Advertising Fund, which is set at one percent (1%) of their gross sales. This fee is paid in the same manner and at the same time as the royalty fees. Mr. Sandless also states that any businesses owned by them or their affiliates will contribute to the Advertising Fund on the same basis as the franchisees.
In addition to the mandatory Advertising Fund contribution, Mr. Sandless franchisees are also required to spend a minimum of $1,500 monthly on local advertising within their designated territory. This local advertising spend is in addition to any expenditures outlined in Section 7.2 of the agreement. Franchisees must provide a quarterly expenditure report accurately reflecting their local advertising spend within ten business days of Mr. Sandless's request. Certain costs, such as employee incentive programs, research expenditures, and salaries for attending advertising meetings, are not included in the local advertising expenditure unless approved in advance by Mr. Sandless.
Mr. Sandless retains significant control over both the Advertising Fund and individual marketing efforts. They have the sole right to determine contributions and expenditures from the Advertising Fund and to select advertising materials and programs. Franchisees are restricted from advertising outside their designated territory without prior written approval from Mr. Sandless. They also need written consent to advertise their business or any products or services via the Internet. Failure to get approval prior to using any piece of marketing in the business, or use generally any unapproved marketing efforts including online, will result in a fine of $500 per occurrence.