Is a Spray Net franchisee required to expend minimum amounts on local advertising?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
will serve as the Initial Marketing Investment designed to promote the Franchised Business within the Designated Territory utilizing Franchisor's Approved Suppliers and/or specified System standards, practices and methodologies for initial marketing campaigns and efforts. Franchisor has the right to collect the Initial Marketing Investment upon execution of this Agreement or any time thereafter upon written notice.
- D. Local Advertising Requirement. Franchisee shall comply with the following requirements in regard to local advertising:
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- Franchisee must expend certain minimum amounts on advertising and promoting the Franchised Business, based on the number of Designated Territories that Franchisee purchases and the length of time the Franchised Business has been in operation, within the Designated Territory(ies) in accordance with the advertising/marketing plan that Franchisor approves (the "Local Advertising Requirement"). Franchisee must annually spend the following amounts pursuant to the Local Advertising Requirement:
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| Third Year of Operation | $54,000 | $72,000 | $80,000 | |---|---|---|---| | Fourth Year of Operation | $56,700 | $75,600 | $96,000 | | Fifth Year of Operation | $59,535 | $79,380 | $100,800 | | Sixth Year of Operation | $62,511.75 | $83,349 | $105,840 | | Seventh Year of Operation | $65,637.34 | $87,516.45 | $111,132 | | Eighth Year of Operation | $68,919.20 | $91,892.27 | $116,688.60 | | Ninth Year of Operation | $72,365.16 | $96,486.89 | $122,523.03 | | Tenth Year of Operation | $75,983.42 | $101,311.23 | $128,649.18 |
| Period | One Designated | Two Designated | Three Designated |
|---|---|---|---|
| Territory | Territories | Territ ories | |
| First Year of Operation | $30,000 | $30,000 | $30,000 |
| Second Year of Operation | $34,500 | $45,000 | $48,000 |
| Third Year of Operation | $40,500 | $54,000 | $60,000 |
| Fourth Year of Operation | $42,525 | $56,700 | $72,000 |
| Fifth Year of Operation | $44,651 | $59,535 | $75,600 |
| Sixth Year of Operation | $46,884 | $62,512 | $79,380 |
| Seventh Year of Operation | $49,228 | $65,637 | $83,349 |
| Eighth Year of Operation | $51,689 | $68,919 | $87,516 |
| Ninth Year of Operation | $54,274 | $72,365 | $91,892 |
| Tenth Year of Operation | $56,988 | $75,983 | $96,487 |
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- Franchisor reserves the right to require Franchisee to expend any portion of the Local Advertising Requirement on (a) products or services Franchisor directs or approves, or (b) services that Franchisee must acquire from an Approved Supplier (which currently includes Franchisor).
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- Franchisor may require that Franchisee expend any portion of the Local Advertising Requirement on services, content and other products/items that must be purchased from one (1) or more Approved Suppliers, and (ii) collect your Local Advertising Requirement and pay such Approved Supplier directly as part of its support services and control rights described hereunder.
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- At Franchisor's option, Franchisee must ensure that: (i) the Franchised Business has a dedicated phone line for use in connection with the Franchised Business only; and (ii) the Franchised Business is listed in the appropriate Internet-based directories and Chamber(s) of Commerce that Franchisor designates. Franchisee shall obtain at least three (3) telephone numbers solely dedicated to the Franchised Business, which Franchisee shall assign to Franchisor, at Franchisor's option, upon termination, expiration, or transfer of this Agreement. Franchisee must list and advertise the telephone number(s) for the Franchised Business in the "White pages" telephone director and the classified or "yellow pages" telephone directory distributed in its trade area and under such categories as Franchisor may specify from time to time.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees must spend a minimum amount on local advertising. This is referred to as the "Local Advertising Requirement," and the specific amount depends on the number of designated territories the franchisee purchases and how long the franchise has been operating. At least 75% of this local advertising requirement must be spent on monthly digital marketing services, which Spray Net may provide directly or through a supplier. This "Digital Marketing Spend" is paid to Spray Net on the first of each month, and the annual minimum is specified in a chart within the FDD.
Spray Net also has the right to dictate how franchisees spend their local advertising funds, potentially requiring them to use approved products, services, or suppliers, including Spray Net itself. Spray Net can also collect the Local Advertising Requirement directly from the franchisee and then pay the approved supplier on their behalf. This gives Spray Net significant control over how franchisees market their businesses locally.
In addition to the ongoing local advertising requirement, Spray Net franchisees must also make an "Initial Marketing Investment" of between $15,000 and $25,000. This investment is designed to promote the franchise within its designated territory using Spray Net's approved suppliers and marketing methods. Spray Net has the right to collect this initial marketing investment upon the signing of the franchise agreement or at any time after providing written notice. Franchisees are also required to obtain at least three dedicated phone lines for the business and list the business in online directories designated by Spray Net, such as Google Local or Angie's List. If a franchisee fails to comply with online listing requests, Spray Net reserves the right to manage the listings and charge the franchisee for the costs.