factual

When is the Digital Marketing Spend payment due to Spray Net from the franchisee?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Franchisee shall spend at least seventy-five percent (75%) of its applicable Local Advertising Requirement, which is based on the number of Designated Territories Franchisee has purchased and the length of time the Franchised Business has been in operation, on monthly digital marketing services (the "Digital Marketing Spend"). Franchisee shall pay Franchisor the Digital Marketing Spend on the first of each month, and Franchisor may provide the applicable digital marketing services or engage a supplier to provide such services. For avoidance of doubt, Franchisee's annual minimum Digital Marketing Spend is stated in the following chart. Franchisee must spend at least the applicable Digital Marketing Spend amount divided by twelve (12) each month:

Source: Item 23 — RECEIPTS (FDD pages 75–219)

What This Means (2025 FDD)

According to Spray Net's 2025 Franchise Disclosure Document, franchisees are required to allocate a minimum of 75% of their Local Advertising Requirement to digital marketing services, referred to as the "Digital Marketing Spend." The amount of the Local Advertising Requirement is determined by the number of Designated Territories the franchisee has purchased and the duration the franchised business has been in operation.

The Digital Marketing Spend is payable to Spray Net on the first of each month. Spray Net may then provide the digital marketing services directly or contract with a third-party supplier to deliver these services.

For prospective Spray Net franchisees, this means budgeting for this monthly payment is essential. The FDD also mentions that the annual minimum Digital Marketing Spend is detailed in a chart, and franchisees must spend at least one-twelfth of this annual amount each month. Therefore, it is important to consult this chart to understand the specific monthly payment obligation based on the franchisee's individual circumstances.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.