Can the Spray Net Brand Development Fund be used to purchase radio 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
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 to purchase radio advertising. The document states that the fund may be used to purchase radio advertising, among other forms of media advertising. Spray Net retains sole control over the creative concepts, materials, and endorsements used, as well as their geographic, market, and media placement and allocation.
Spray Net franchisees contribute 2% of their gross sales to the Brand Development Fund, subject to a minimum amount based on the number of designated territories purchased and the length of time the franchised business has been in operation. These contributions are used to enhance the image of the Spray Net system through various advertising, marketing, and promotional programs.
Spray Net will account for the Fund contributions separately from its other funds and will not use the Fund for any of its general operating expenses, except to compensate for reasonable salaries, administrative costs, third-party costs, travel expenses, and overhead incurred in administering the Fund and its programs. The Fund is not Spray Net's asset or a trust, and Spray Net does not owe franchisees fiduciary obligations because of maintaining, directing, or administering the Fund or any other reason.
Spray Net is not required to spend any of a franchisee's Fund Contributions in the Designated Territory granted under the Franchise Agreement. However, Spray Net will provide franchisees with an accounting of the Fund within 120 days after its fiscal year end upon written request. Spray Net has the right to modify or discontinue the Fund as it deems appropriate in its sole discretion.