What are Spray Net franchisees required to do with their Local Advertising Requirement funds?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
You must spend a minimum annual amount on local advertising for your Franchised Business ("Local Advertising Requirement"). You are required to spend 75% of your Local Advertising Requirement on digital marketing ("Digital Marketing Spend" or "DMS") on a monthly basis. We are currently the only Approved Supplier for digital marketing, and we may either perform the digital marketing services or contract with another supplier to provide them. Whether we provide the digital marketing services or engage another supplier to provide them, you are required to pay us our then-current fee for managing such digital marketing services (the
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, franchisees must spend a minimum annual amount on local advertising for their franchised business, referred to as the "Local Advertising Requirement." A significant portion of this, specifically 75%, must be allocated to digital marketing, termed "Digital Marketing Spend" (DMS), on a monthly basis.
Spray Net is currently the only approved supplier for digital marketing services, and they have the option to either perform these services directly or contract with another supplier. Regardless of who provides the digital marketing services, franchisees are obligated to pay Spray Net a fee for managing these services. This fee is referred to as the "Production Fee" and is intended to cover the administrative costs associated with placing the digital advertising, subject to a maximum cap.
In addition to the Local Advertising Requirement and Digital Marketing Spend, Spray Net franchisees are also required to contribute to the Brand Fund each month. The specific amounts for the Local Advertising Requirement, Digital Marketing Spend, Production Fee, and Brand Fund Contribution are detailed in charts within the FDD, and these amounts vary based on the number of Designated Territories the franchisee purchases. These requirements ensure consistent marketing efforts and brand promotion across all Spray Net franchise locations.