Can the Spray Net Brand Development Fund be used for internet advertising?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
We will administer and use the Fund to meet certain costs related to maintaining, administering, directing, conducting and preparing advertising, marketing, public relations, and/or promotional programs and materials, and any other activities which we believe will enhance the image of the System. We will designate all programs that the Fund finances, with sole control over the creative concepts, materials, and endorsements used and their geographic, market, and media placement and allocation. The Fund may also be used to cover the costs and fees associated with: preparing and producing video, audio, and written materials and electronic media; website maintenance and development, internet advertising, administering regional and multi-regional marketing and advertising programs, including purchasing trade journal, direct mail, website, radio and other media advertising and using advertising, promotion, and marketing agencies and other advisors to provide assistance; and supporting public relations, market research, and other
advertising, promotion, and marketing activities. The Fund may be used for advertising materials/campaigns in printed materials or on radio or television for local, regional or national circulation, internet regional or national advertising, as we deem appropriate in our discretion. We and/or a regional or national advertising agency may be used to produce all advertising and marketing. (Franchise Agreement, Section 9(E)).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–49)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the Brand Development Fund can be used for internet advertising. The document specifies that the fund may cover costs and fees associated with website maintenance and development, internet advertising, and administering regional and multi-regional marketing and advertising programs. This includes purchasing advertising on websites and other media. The fund can be used for internet regional or national advertising, as Spray Net deems appropriate.
Spray Net maintains sole control over the creative concepts, materials, and endorsements used in advertising, as well as their geographic, market, and media placement and allocation. This means that while franchisees contribute to the fund, Spray Net ultimately decides how the money is spent and which advertising strategies are employed. Franchisees should be aware that Spray Net is not required to spend any of a franchisee's contributions in their specific designated territory.
During the fiscal year ending December 31, 2024, Spray Net spent $594,022 of Fund Contributions, allocating approximately 25% to media production and 75% to media placement. Franchisees should also note that Spray Net may establish a Franchise Advertising Council to advise on advertising expenditures, but Spray Net retains the right to modify or dissolve this council at any time. The Brand Development Fund is not an asset or trust, and Spray Net does not owe franchisees any fiduciary obligations because of maintaining, directing, or administering the Fund or any other reason.
Spray Net will provide an unaudited, annual statement of Fund collections and costs upon written request from the franchisee. The fund may spend more or less than the total contributions in a given year, borrow to cover deficits, or invest any surplus for future use. Spray Net will not use fund contributions for advertising that is principally a solicitation for the sale of franchises, although they may display the phrase "Franchises Available" on any advertising covered by the fund.