Can the Spray Net Brand Development Fund be used for website maintenance and development?
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 for website maintenance and development. The document specifies that the fund can cover costs and fees associated with website maintenance and development, as well as internet advertising. This means that a portion of the franchisee's contribution to the fund may be allocated to maintaining and improving the Spray Net website.
Spray Net retains sole control over the creative concepts, materials, endorsements, and the geographic, market, and media placement and allocation of the programs financed by the fund. The franchisor decides how the fund is used to enhance the image of the Spray Net system. Franchisees contribute 2% of their gross sales to the 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.
Spray Net spent $594,022 of Fund Contributions during the fiscal year ending December 31, 2024, allocating approximately 25% to media production and 75% to media placement. While the fund is intended to benefit the Spray Net system, the franchisor is not obligated to spend any of a franchisee's contributions in their specific designated territory. The franchisor will provide an accounting of the fund within 120 days after their fiscal year end upon written request.
Spray Net has the right to modify or discontinue the fund at its sole discretion. The fund is not considered an asset or trust, and Spray Net does not owe franchisees any fiduciary obligations related to the fund's management. This means that while franchisees contribute to the fund, Spray Net has significant control over how the money is spent, and there is no guarantee that contributions will directly benefit any specific franchisee's territory.