What costs can the Spray Net advertising fund be used to meet?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fund will be maintained and administered by Franchisor or Franchisor's designee as follows:
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- Franchisor will use the fund and all contributions to it and any earnings on it, for preparing, directing, conducting, placing, and administering advertising, marketing, public relations, and/or promotional programs and materials, and any other activities, that Franchisor believes would enhance the image of the System, Proprietary Marks, and Approved Products or Services.
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- Franchisor is not obligated to spend monies from Fund in any particular Franchisee's market in proportion to the payments to the Fund made by the Franchisee in that market. Franchisor does not represent that it will spend any particular amount of advertising funds locally, regionally, or nationally.
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- The Fund may be used to meet any and all costs of: maintaining, administering, directing, and preparing advertising, including any and all digital marketing/advertising content, as well as employing training, technology and/or other developmental tools designed to enhance the System or that is otherwise associated with training tools designed to assist owners. This includes, among other things, direct mail advertising, marketing surveys and other public relations activities, developing and maintaining the Franchisor's Website, employing advertising and public relations agencies, purchasing promotional items, providing other marketing materials and services to the businesses operating under the System, and any other activities that Franchisor determines appropriate to develop the brand and/or System. These costs may include the proportionate salary share of Franchisor's employees that devote time and render services for advertising and promotion or the administration of the Fund, including administrative costs, salaries, and overhead expenses related to administering the Fund and its programs. No part of the Fund shall be used by Franchisor to defray any of its general operating expenses, other than those Franchisor allocates to the advertising described in this Section or other activities reasonably related to the administration or direction of the Fund.
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- Franchisor may spend all Fund contributions during Franchisor's fiscal year within which such contributions are made; however, Franchisor has no obligation or duty to do so. If excess amounts remain in any Fund at the end of such fiscal year, these excess amounts will roll over into the Fund for the following fiscal year.
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- Franchisor has the right to suspend or terminate the Fund at any time.
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- An unaudited accounting of the operation of the Fund shall be prepared annually
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the advertising fund can cover a wide array of expenses related to enhancing the brand's image and supporting the franchise system. The fund, administered by Spray Net, is used for advertising, marketing, public relations, and promotional programs and materials. These activities aim to boost the visibility and reputation of the Spray Net system, its proprietary marks, and approved products or services.
Specifically, the advertising fund may be used to cover the costs of maintaining, administering, directing, and preparing advertising materials, including digital marketing content. It also supports training, technology, and developmental tools designed to improve the Spray Net system and assist franchise owners. Examples of covered expenses include direct mail advertising, marketing surveys, public relations activities, website development and maintenance, advertising and public relations agencies, promotional items, and other marketing services.
Furthermore, the fund can be used to cover the proportionate salary share of Spray Net employees who dedicate their time to advertising, promotion, or fund administration. This includes administrative costs, salaries, and overhead expenses related to managing the fund and its programs. However, the document specifies that the fund cannot be used for Spray Net's general operating expenses, except for those directly related to advertising or fund administration. Any excess funds remaining at the end of the fiscal year will roll over into the fund for the following year. Spray Net also retains the right to suspend or terminate the fund at any time.