How is the Spray Net Annual Fund Contribution amount determined?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
E. Brand Development Fund. Franchisor has established a brand development Fund (the "Fund") designed to promote the System, Proprietary Marks and the brand generally, and Franchisee shall contribute to the Fund (Franchisee's "Fund Contribution"). Franchisee shall contribute, on the first day of each month, a Fund Contribution equal to two percent (2%) of Franchisee's Gross Sales from the prior month or the Minimum Fund Contribution reflected in the chart below, whichever is greater. Franchisee's Minimum Fund Contribution is based on the number of Designated Territories that Franchisee has purchased and the length of time the Franchised Business has been in operation. Franchisee's monthly Minimum Fund Contribution is equal to the applicable amount for "Annual Minimum Fund Contribution" in the below chart divided by twelve (12). All payments by Franchisee to the Fund shall be made in accordance with the terms of Franchisor's Payment Program and are non-refundable upon payment, and Franchisor will account separately for all sums paid to the Fund.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Brand Development Fund. This contribution, referred to as the "Fund Contribution," is determined by two factors: a percentage of the franchisee's gross sales and a minimum contribution amount. Specifically, the franchisee must contribute the greater of two percent (2%) of their gross sales from the previous month or the Minimum Fund Contribution.
The Minimum Fund Contribution is based on the number of Designated Territories the franchisee has purchased and the length of time the franchised business has been in operation. The monthly Minimum Fund Contribution is calculated by dividing the applicable Annual Minimum Fund Contribution amount (found in a chart within the FDD) by twelve (12). This ensures that franchisees contribute a base amount to the fund, regardless of their monthly gross sales, with the actual contribution potentially increasing if 2% of gross sales exceeds this minimum.
This structure ensures that Spray Net franchisees contribute to the brand's marketing and promotional efforts, with the contribution amount scaling based on their business size (number of territories) and maturity (length of operation). The fund is used for various marketing and advertising activities aimed at enhancing the Spray Net brand and supporting the franchise system. Franchisees should carefully review the chart detailing the Annual Minimum Fund Contribution to understand their financial obligations based on their specific circumstances.