What is the annual production fee cap for a Spray Net franchise, and how is it collected?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
of Designated Territories you purchase.
| Period | Annual Local Advertising Requirement | Annual Digital Marketing Spend (spent monthly) | Annual Production Fee Cap (collected monthly) | Annual Brand Fund Contribution (collected monthly) | |
|---|---|---|---|---|---|
| First Year of Operation | $40,000 | $30,000 | $6,300 | $9,000 | |
| Second Year of Operation | $46,000 | $34,500 | $9,000 | $12,938 | |
| Third Year of Operation | $54,000 | $40,500 | $9,000 | $15,188 | |
| Fourth Year of Operation | $56,700 | $42,525 | $9,000 | $15,947 | |
| Fifth | $59,535 | $44,651 | $9,000 | $16,744 | |
| Year of Operation | |||||
| Sixth | $62,511.75 | $46,884 | $9,000 | $17,581 | |
| Year of Operation | |||||
| Seventh | $65,637.34 | $49,228 | $9,000 | $18,461 | |
| Year of Operation | |||||
| Eighth | $68,919.20 | $51,689 | $9,000 | $19,384 | |
| Year of Operation | |||||
| Ninth | $72,365.16 | $54,274 | $9,000 | $20,353 | |
| Year of Operation | |||||
| Tenth | $75,983.42 | $56,988 | $9,000 | $21,370 | |
| Year of Operation |
| Period | Annual Local Advertising Requirement | Annual Digital Marketing Spend (spent monthly) | Annual Production Fee Cap (collected monthly) | Annual Brand Fund Contribution (collected monthly) |
|---|---|---|---|---|
| First Year of Operation | $40,000 | $30,000 | $8,400 | $10,500 |
| Second Year of Operation | $60,000 | $45,000 | $12,000 | $14,250 |
| Third Year of Operation | $72,000 | $54,000 | $12,000 | $18,000 |
| Fourth Year of Operation | $75,600 | $56,700 | $12,000 | $21,000 |
| Fifth | $79,380 | $59,535 | $12,000 | $22,050 |
| Year of Operation | ||||
| Sixth | $83,349 | $62,512 | $12,000 | $23,153 |
| Year of Operation | ||||
| Seventh | $87,516.45 | $65,637 | $12,000 | $24,310 |
| Year of Operation |
| Eighth Year of Operation | $91,892.27 | $68,919 | $12,000 | $25,526 |
|---|---|---|---|---|
| Ninth | $96,486.89 | $72,365 | $12,000 | $26,802 |
| Year of Operation | ||||
| Tenth | $101,311.23 | $75,983 | $12,000 | $28,142 |
| Year of Operation |
| Period | Annual Local Advertising Requirement | Annual Digital Marketing Spend (spent monthly) | Annual Production Fee Cap (collected monthly) | Annual Brand Fund Contribution (collected monthly) | ||
|---|---|---|---|---|---|---|
| First Year of Operation | $40,000 | $30,000 | $9,660 | $11,250 | ||
| Second Year of Operation | $64,000 | $48,000 | $13,800 | $17,250 | ||
| Third Year of Operation | $80,000 | $60,000 | $13,800 | $21,750 | ||
| Fourth Year of Operation | $96,000 | $72,000 | $13,800 | $24,000 | ||
| Fifth | $100,800 | $75,600 | $13,800 | $25,800 | ||
| Year of Operation | ||||||
| Sixth | $105,840 | $79,380 | $13,800 | $27,735 | ||
| Year of Operation | ||||||
| Seventh | $111,132 | $83,349 | $13,800 | $29,815 | ||
| Year of Operation | ||||||
| Eighth | $116,688.60 | $87,516 | $13,800 | $32,051 | ||
| Year of Operation | ||||||
| Ninth | $122,523.03 | $91,892 | $13,800 | $34,455 | ||
| Year of Operation | ||||||
| Tenth | $128,649.18 | $96,487 | $13,800 | $37,039 | ||
| Year of Operation |
- Initial Marketing Investment. You must spend the below amounts on the initial marketing of your Franchised Business during the first two months of each of the below respective periods:
| Period | Initial Marketing for 1 Designated Territory | Initial Marketing for 2 Designated Territories | Initial Marketing for 3 Designated Territories |
|---|---|---|---|
| Within two months before | $20,000 | $20,000 | $20,000 |
| Opening | |||
| During Your Second Year | $10,000 | $10,000 | $10,000 |
| of Operation |
| During Your Third Year of Operation | - | - | $7,500 | |
|---|---|---|---|---|
| ---------------------------------------- | --- | --- | --------- | -- |
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- Audit Costs. Following an audit, if we find you have underreported Gross Sales, you will pay the Royalty Fee and all other past amounts due under the Franchise Agreement due to your underreporting, as well as interest and all our costs associated with conducting the audit. Audit costs vary depending upon where you are located, the condition of your financial records, what we audit and when. Previous audit costs alone range between $1,000 and $3,000 and could be more. There are no audit costs to you if your records, reports and payment are in order and current.
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- Late Fees. Late fees begin from the date payment was due, but not received, or date of underpayment.
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Source: Item 6 — > **ITEM 6 OTHER FEES (FDD pages 15–29)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the annual production fee cap varies depending on the number of Designated Territories purchased. The production fee covers the administrative cost of placing digital advertising. This fee is collected monthly.
For franchisees operating in their first year, the annual production fee cap is $6,300 under one fee structure, $8,400 under another, and $9,660 under a third. By the second year, these caps increase to $9,000, $12,000, and $13,800 respectively. After the second year, the annual production fee cap remains at $9,000 under one structure, $12,000 under another, and $13,800 under the third, through the tenth year of operation.
Spray Net collects all fees via GoCardless, and franchisees must authorize Spray Net and GoCardless to automatically collect these fees. Spray Net may change the payment schedule or require a different payment method with 30 days' written notice. They may also integrate a payment processing feature into their Business Management Software, requiring franchisees to use it and be responsible for associated terminal and processing fees.