Does Spray Net have a fiduciary duty to the franchisee in administering the advertising fund?

According to Spray Net's 2025 Franchise Disclosure Document, Spray Net explicitly states that it has no fiduciary duty to franchisees in administering the advertising fund. This means that Spray Net is not legally obligated to act in the best interests of its franchisees when managing the fund.

Spray Net retains significant control over the advertising fund. It will maintain and administer the fund, using contributions and earnings to enhance the image of the Spray Net system, proprietary marks, and approved products or services. Spray Net is not obligated to spend monies from the fund in any particular franchisee's market in proportion to the payments made by that franchisee. The company does not guarantee any specific amount of advertising funds will be spent locally, regionally, or nationally.

Spray Net details that the fund may cover various costs, including maintaining and preparing advertising, digital marketing content, training, technology, and developmental tools. These costs can also include a proportionate share of Spray Net's employees' salaries for advertising, promotion, or fund administration, including administrative costs and overhead. However, the document specifies that the fund will not be used for Spray Net's general operating expenses, except those allocated to advertising. Franchisees should be aware that while Spray Net may establish a Franchise Advertising Council for advice, the recommendations are not binding, and Spray Net ultimately decides on the council's membership, policies, and procedures.