factual

How are advertising fees for the Spray Net brand fund collected from franchisees?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

The Company maintains a brand fund established to collect and administer funds contributed for use in advertising and promotional programs for franchise units. Advertising fees are collected from franchisees based on a percentage of franchisee gross revenues.

Source: Item 23 — RECEIPTS (FDD pages 75–219)

What This Means (2025 FDD)

According to Spray Net's 2025 Franchise Disclosure Document, advertising fees are collected from franchisees based on a percentage of their gross revenues. These fees are earmarked for the brand fund, which Spray Net uses to administer advertising and promotional programs for franchise units.

This means that a portion of each Spray Net franchisee's sales revenue is allocated to a collective fund managed by the franchisor. The amount contributed is directly tied to the franchisee's success, as higher gross revenues will result in larger advertising fee payments.

Spray Net has the discretion to use these funds for various advertising, marketing, and promotional activities that it believes will enhance the brand's image. While franchisees contribute to the fund, Spray Net is not obligated to spend the monies in proportion to the contributions made by franchisees in any particular market. This allows Spray Net to allocate resources strategically across different regions or for national campaigns, potentially benefiting the entire franchise system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.