Are the fees in Item 6 of the Spray Net FDD subject to increase?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Name of Fee | Amount1 | Due Date | Remarks |
|---|---|---|---|
| Initial Marketing Investment | $15,000 to $40,000, depending on the number of Designated Territories you purchase.5 | Upon execution of the Franchise Agreement and according to a specific timeline depending upon the number of Designated Territories you purchase. If paid to us, currently collected via GoCardless. | While the Initial Marketing Investment will be paid out to our approved or designated third party suppliers for these kinds of services, we expect and intend to collect this amount directly from you and may keep a portion of the Initial Marketing Investment as consideration for managing the placement and suppliers associated with this initial marketing and related activities designed to (a) increase visibility of the Franchised Business within your Designated Territory, and/or (b) generate prospective client interest and sales appointments prior to and up through the opening and initial operations of your Franchised Business. |
| Contribution to Brand Development Fund (the "Fund") | 2% of Gross Sales; subject to a minimum amount. The minimum amount is based on the number of Designated Territories you have purchased and the length of time your Franchised Business has been in operation | Payable as we on the 1st of determine each month. Currently collected via GoCardless. | We have established a brand development fund (the "Fund") for purposes of promoting, marketing, advertising and otherwise developing the System, Proprietary Marks, Approved Services and our brand generally, as we determine appropriate. We will administer the Fund and will provide you with prior written notice of any change to your Fund Contribution. |
| Spray-Pal | Then-current fee charged by the provider of this software. Currently, $40 per month. | Monthly after opening for business. Currently collected via GoCardless. | This software uses an AI-powered chatbot to instantly answer common franchisee or franchisee employee questions, acting like a virtual assistant that helps automate support and improve response times—no human needed for routine inquiries. |
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, several fees outlined in Item 6 are subject to change. Specifically, the Contribution to the Brand Development Fund is a percentage of gross sales, but Spray Net retains the right to modify this contribution with prior written notice.
The Spray-Pal fee is based on the then-current fee charged by the provider of the software, which is currently $40 per month. This indicates that the fee could fluctuate depending on the provider's pricing. The Production Fee, paid to Spray Net for running digital marketing campaigns, can also be increased as costs and other economic factors change over time.
Additionally, the Business Management Software fee is subject to change, as it is based on the then-current software fee charged by Spray Net or another designated provider. Currently, this fee is $350 per month, plus 0.25% of Gross Sales, but this amount could vary if Spray Net changes providers or alters its fee structure. Prospective franchisees should consider that these potential fee increases could impact their overall operating costs and profitability.