Is the Spray Net Fund Contribution refundable?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
E. Brand Development Fund. Franchisor has established a brand development Fund (the "Fund") designed to promote the System, Proprietary Marks and the brand generally, and Franchisee shall contribute to the Fund (Franchisee's "Fund Contribution"). Franchisee shall contribute, on the first day of each month, a Fund Contribution equal to two percent (2%) of Franchisee's Gross Sales from the prior month or the Minimum Fund Contribution reflected in the chart below, whichever is greater. Franchisee's Minimum Fund Contribution is based on the number of Designated Territories that Franchisee has purchased and the length of time the Franchised Business has been in operation. Franchisee's monthly Minimum Fund Contribution is equal to the applicable amount for "Annual Minimum Fund Contribution" in the below chart divided by twelve (12). All payments by Franchisee to the Fund shall be made in accordance with the terms of Franchisor's Payment Program and are non-refundable upon payment, and Franchisor will account separately for all sums paid to the Fund.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the Brand Development Fund contributions are non-refundable. Specifically, all payments made by the franchisee to the Fund are considered fully earned and nonrefundable upon payment. This means that once a Spray Net franchisee makes a contribution to the Brand Development Fund, they cannot get that money back, regardless of the circumstances.
Spray Net franchisees are required to contribute to the Brand Development Fund, which is used to promote the Spray Net system, proprietary marks, and brand. The contribution is either 2% of the franchisee's gross sales from the prior month or a minimum contribution, whichever is greater. The minimum contribution is based on the number of designated territories the franchisee has purchased and how long the franchised business has been in operation.
Franchisors typically use brand development funds for marketing and advertising efforts to benefit the entire franchise system. The non-refundable nature of the fund contribution is a standard practice in franchising, as these funds are pooled and allocated for system-wide initiatives. Franchisees should factor this non-refundable aspect into their financial planning and understand that these contributions are a necessary part of their ongoing obligations as a Spray Net franchisee.