How is the Digital Marketing Spend currently collected from Spray Net franchisees?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise stated this Item, all fees noted in this Item 6 are uniformly imposed and are payable to us and are non-refundable. All fees due under the Franchise Agreement shall be collected by us through any method that we determine. All fees are currently collected via GoCardless. You must execute certain forms or take certain stepsthat authorize us to collect all fees by whatever method we determine.
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, all fees due under the Franchise Agreement are collected through methods determined by Spray Net. Currently, these fees, including the Digital Marketing Spend, are collected via GoCardless. Franchisees must complete the necessary steps to authorize Spray Net to collect fees through their chosen method.
Spray Net requires franchisees to spend a minimum annual amount on local advertising, with 75% of that amount specifically allocated to digital marketing. Spray Net is currently the only approved supplier for digital marketing services, and franchisees are required to pay Spray Net's fee for managing these services, known as the Production Fee. This fee covers the administrative costs of placing the digital advertising and is subject to a cap.
The FDD outlines the Annual Digital Marketing Spend for the first ten years of operation, varying from $30,000 in the first year to $56,988 in the tenth year, depending on the number of Designated Territories purchased. The Annual Production Fee Cap also varies, ranging from $6,300 to $9,660 in the first year, up to $9,000 to $13,800 by the tenth year. These amounts are collected monthly.
It is important to note that Spray Net may integrate a payment processing feature into their Business Management Software in the future, which franchisees would be required to use, incurring monthly terminal and payment processing fees. Additionally, all fees are subject to increase due to inflation as measured by the United States Consumer Price Index.