What is the Spray Net franchisee required to do with the 'Initial Marketing Investment'?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
s in writing. Franchisor may revoke its approval of any previously-approved advertising materials upon notice to Franchisee. Franchisor reserves the right to require Franchisee to include certain language on all advertising to be used locally by Franchisee or to be used by a Cooperative, including, but not limited to, the phrase "Franchises Available" and references to Franchisor's telephone number and/or website.
- C. Initial Marketing Investment. Franchisee must expend, and Franchisor will typically collect all or a portion of the Initial Marketing Investment amounting between $15,000 and $25,000 that 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:
-
- 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").
-
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, a new franchisee must expend funds on an 'Initial Marketing Investment.' This investment ranges from $15,000 to $25,000 and is intended to promote the new Spray Net franchise within its designated territory. Spray Net will typically collect all or a portion of this investment. These funds will be used following Spray Net's standards for initial marketing campaigns.
Spray Net has the right to collect the Initial Marketing Investment upon the execution of the Franchise Agreement or at any time thereafter with written notice. The franchisee will pay the Initial Marketing Investment to Spray Net, an approved supplier, or any other third party that Spray Net designates. Spray Net will then use or direct these funds as it sees fit to promote and market the franchise within the designated territories, including directing funds to approved suppliers.
If a Spray Net franchisee purchases more than one designated territory, they must spend additional amounts in the first two months of each year of operation, in addition to the initial marketing investment spent prior to opening the franchised business. This ensures continued marketing efforts to support the growth and visibility of the Spray Net franchise.