Regarding the Mr. Sandless agreement, what costs and expenses is the franchisee solely responsible for?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
g, 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.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, franchisees are responsible for various costs and expenses related to advertising, training, and other aspects of operating their franchise. Specifically, franchisees must spend a minimum of $1,500 monthly on local advertising within their designated territory. However, certain expenditures are excluded from this local advertising requirement unless pre-approved by Mr. Sandless in writing. These excluded costs include incentive programs for employees or agents, research expenditures, salaries and expenses for personnel attending advertising meetings, workshops, or other marketing activities, and charitable, political, or other contributions or donations.
Mr. Sandless also requires franchisees who are seeking a Successor Franchise Agreement to cover specific expenses. Franchisees must satisfy the then-current training requirements for continuing franchisees at their own expense as of the date of the subsequent agreement. This means franchisees will need to budget for any training deemed necessary by Mr. Sandless to keep their skills and knowledge up-to-date.
Furthermore, the Mr. Sandless franchise agreement emphasizes that the franchisee's success depends on their own efforts, business judgment, and the performance of their employees. Franchisees acknowledge that Mr. Sandless does not guarantee financial success, even if the franchisee follows all advice, recommendations, programs, policies, and procedures. Franchisees are responsible for their own business efforts and the economic hazards associated with operating the business. This underscores the importance of careful planning, diligent execution, and effective management by the franchisee to achieve profitability and growth.