On what must Spray Net franchisees expend their Local Advertising Requirement funds as of the Issuance Date?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
ration | $72,365.16 | $96,486.89 | $122,523.03 | | Tenth Year of Operation | $75,983.42 | $101,311.23 | $128,649.18 | As of the Issuance Date, we require you to expend your Local Advertising Requirement funds on our Approved Suppliers (currently, third-parties directly with the right – but not obligation – to use us for certain services) for our System-approved marketing/advertising campaigns and related services/content. We reserve the right to require that you expend any portion of these funds on (a) products or services we direct or approve, or (b) services that you must acquire from an Approved Supplier (which currently includes us).
We must approve all advertising in writing before it is used in connection with the Franchised Business, including all use of the Proprietary Marks. (Franchise Agreement, Section 9). We do not require you to participate in local or regional advertising cooperatives or reserve the right to require such participation.
You must spend at least seventy-five percent (75%) of your applicable Local Advertising Requirement, which is based on the number of Designated Territories you purchase and the length of time your Franchised Business has been in operation, on monthly digital marketing services (the "Digital Marketing Spend").
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–49)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees are required to spend their Local Advertising Requirement funds on approved suppliers for system-approved marketing and advertising campaigns and related services and content. These approved suppliers are third parties with the right, but not the obligation, to work with Spray Net for specific services.
Spray Net retains the right to mandate that franchisees allocate a portion of these funds towards products or services that Spray Net directs or approves. Additionally, franchisees may be required to use approved suppliers, which can include Spray Net itself, for certain services.
At least 75% of the Local Advertising Requirement must be used for monthly digital marketing services. This "Digital Marketing Spend" is paid to Spray Net on the first of each month, and Spray Net may either provide the digital marketing services directly or engage a supplier to do so. The specific annual minimum Digital Marketing Spend is detailed in a chart within the FDD, and franchisees must spend at least one-twelfth of this annual amount each month.