When is the Digital Marketing Spend due for a Spray Net franchise?

According to Spray Net's 2025 Franchise Disclosure Document, the Digital Marketing Spend (DMS) is part of the Local Advertising Requirement, where franchisees must spend a minimum annual amount on local advertising for their franchised business. Specifically, franchisees are required to allocate 75% of their Local Advertising Requirement to digital marketing, which constitutes the Digital Marketing Spend. This DMS is to be spent on a monthly basis.

Spray Net designates itself as the only Approved Supplier for digital marketing services. The company may either directly provide these services or contract with another supplier. Regardless of who provides the services, franchisees are obligated to pay Spray Net's current fee for managing the digital marketing services. This fee is referred to as the Production Fee, which covers the administrative costs associated with placing the digital advertising and is subject to a cap or maximum amount.

The FDD includes charts that outline the Local Advertising Requirement, Digital Marketing Spend, Production Fee, and Brand Fund Contribution based on the number of Designated Territories a franchisee purchases. These amounts vary annually over the first ten years of operation. For example, for franchisees with one Designated Territory, the annual Digital Marketing Spend for the first year of operation is $30,000, which is spent monthly. This amount increases in subsequent years, reaching $56,988 by the tenth year. For franchisees with two Designated Territories, the annual Digital Marketing Spend for the first year of operation is $30,000, which is spent monthly. This amount increases in subsequent years, reaching $96,487 by the tenth year. For franchisees with three Designated Territories, the annual Digital Marketing Spend for the first year of operation is $30,000, which is spent monthly. This amount increases in subsequent years, reaching $65,637 by the seventh year.

Prospective Spray Net franchisees should note that these marketing expenses are mandatory and contribute significantly to the overall cost of operating the franchise. The requirement to use Spray Net or its designated supplier for digital marketing ensures brand consistency but also limits the franchisee's control over marketing strategies and costs. Franchisees should carefully review the charts in Item 6 of the FDD to understand the specific amounts required for their Designated Territories and factor these costs into their financial projections.