Can Mr. Sandless use payments received from suppliers without restriction?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ill 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. While we do not anticipate that any part of the Advertising Fund contributions will be used for advertising which is principally a solicitation for franchisees, we reserve the right to use the Advertising Fund for public relations or recognition of the Mr.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
Based on the 2025 Mr. Sandless Franchise Disclosure Document, the franchisor has broad discretion over the Advertising Fund. Mr. Sandless has the sole right to determine contributions to and expenditures from the Advertising Fund, and has sole authority to select advertising materials and programs. They are expected to make a good faith effort to expend Advertising Fund contributions in the general best interests of the System on a national or regional basis.
The advertising fund can be used for various advertising-related costs, including television, radio, magazine, social media, newspaper and electronic advertising campaigns, direct mail and outdoor billboard advertising, public relations activities, marketing research, employing advertising agencies, developing, enhancing and maintaining the Website, and personnel and other departmental costs for advertising that Mr. Sandless internally administers or prepares. Franchisees acknowledge that they may not directly or on a pro rata basis benefit from such expenditures.
Mr. Sandless may use the Advertising Fund for public relations or recognition of the Mr. Sandless brand, for the creation and maintenance of a Website, a portion of which can be used to explain the franchise offering and solicit potential franchisees, and to include a notation in any advertisement indicating "Franchises Available." Mr. Sandless also has the right to reimburse themselves from the Advertising Fund contributions for reasonable costs and overhead incurred in activities related to the direction and implementation of the Advertising Fund. Any monies remaining in the Advertising Fund at the end of any fiscal year shall carry forward to the next fiscal year.