How will the franchisor administer the Fund for the Spray Net system?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fund will be maintained and administered by Franchisor or Franchisor's designee as follows:
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- Franchisor will use the fund and all contributions to it and any earnings on it, for preparing, directing, conducting, placing, and administering advertising, marketing, public relations, and/or promotional programs and materials, and any other activities, that Franchisor believes would enhance the image of the System, Proprietary Marks, and Approved Products or Services.
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- Franchisor is not obligated to spend monies from Fund in any particular Franchisee's market in proportion to the payments to the Fund made by the Franchisee in that market. Franchisor does not represent that it will spend any particular amount of advertising funds locally, regionally, or nationally.
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- The Fund may be used to meet any and all costs of: maintaining, administering, directing, and preparing advertising, including any and all digital marketing/advertising content, as well as employing training, technology and/or other developmental tools designed to enhance the System or that is otherwise associated with training tools designed to assist owners. This includes, among other things, direct mail advertising, marketing surveys and other public relations activities, developing and maintaining the Franchisor's Website, employing advertising and public relations agencies, purchasing promotional items, providing other marketing materials and services to the businesses operating under the System, and any other activities that Franchisor determines appropriate to develop the brand and/or System. These costs may include the proportionate salary share of Franchisor's employees that devote time and render services for advertising and promotion or the administration of the Fund, including administrative costs, salaries, and overhead expenses related to administering the Fund and its programs. No part of the Fund shall be used by Franchisor to defray any of its general operating expenses, other than those Franchisor allocates to the advertising described in this Section or other activities reasonably related to the administration or direction of the Fund.
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- Franchisor may spend all Fund contributions during Franchisor's fiscal year within which such contributions are made; however, Franchisor has no obligation or duty to do so. If excess amounts remain in any Fund at the end of such fiscal year, these excess amounts will roll over into the Fund for the following fiscal year.
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- Franchisor has the right to suspend or terminate the Fund at any time.
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- An unaudited accounting of the operation of the Fund shall be prepared annually
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the Fund will be maintained and administered by Spray Net or its designee. Spray Net will use the fund for advertising, marketing, public relations, and promotional programs and materials 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 to the Fund made by the franchisee in that market. Spray Net does not represent that it will spend any particular amount of advertising funds locally, regionally, or nationally.
The Fund may be used to meet any and all costs of maintaining, administering, directing, and preparing advertising, including digital marketing/advertising content, as well as employing training, technology and/or other developmental tools designed to enhance the System or that is otherwise associated with training tools designed to assist owners. This includes direct mail advertising, marketing surveys and other public relations activities, developing and maintaining Spray Net's Website, employing advertising and public relations agencies, purchasing promotional items, providing other marketing materials and services to the businesses operating under the System, and any other activities that Spray Net determines appropriate to develop the brand and/or System. These costs may include the proportionate salary share of Spray Net's employees that devote time and render services for advertising and promotion or the administration of the Fund, including administrative costs, salaries, and overhead expenses related to administering the Fund and its programs. No part of the Fund shall be used by Spray Net to defray any of its general operating expenses, other than those Spray Net allocates to the advertising described in this Section or other activities reasonably related to the administration or direction of the Fund.
Spray Net may spend all Fund contributions during Spray Net's fiscal year within which such contributions are made; however, Spray Net has no obligation or duty to do so. If excess amounts remain in any Fund at the end of such fiscal year, these excess amounts will roll over into the Fund for the following fiscal year. Spray Net has the right to suspend or terminate the Fund at any time. An unaudited accounting of the operation of the Fund shall be prepared annually.