What happens if a Spray Net franchisee fails to meet the Local Advertising Requirement?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
are not required to spend any amount on advertising in your Designated Territory.
Local Advertising Requirement
You must expend certain minimum amounts on advertising and promoting the Franchised Business, based on the number of Designated Territories that you purchase and the length of time your Franchised Business has been in operation, within the Designated Territory(ies) in accordance with the advertising/marketing plan that we approve. You must annually spend the following amounts pursuant to the Local Advertising Requirement:
| Period | One Designated | Two Designated | Three Designated | |---|---|---|---| | | Territory | Territories | Territ ories | | First Year of Operation | $40,000 | $40,000 | $40,000 | | Second Year of Operation | $46,000 | $60,000 | $64,000 | | Third Year of Operation | $54,000 | $72,000 | $80,000 |
| Fourth Year of Operation | $56,700 | $75,600 | $96,000 | |---|---|---|---| | Fifth Year of Operation | $59,535 | $79,380 | $100,800 | | Sixth Year of Operation | $62,511.75 | $83,349 | $105,840 | | Seventh Year of Operation | $65,637.34 | $87,516.45 | $111,132 | | Eighth Year of Operation | $68,919.20 | $91,892.27 | $116,688.60 | | Ninth Year of Operation | $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.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–49)
What This Means (2025 FDD)
Based on the 2025 Spray Net Franchise Disclosure Document, franchisees must spend a minimum amount on local advertising and promoting their franchise, in accordance with an advertising/marketing plan approved by Spray Net. The amount spent must correspond to the number of designated territories purchased and the length of time the franchise has been in operation.
As of the issuance date of the FDD, Spray Net requires franchisees to spend their local advertising funds on approved suppliers for system-approved marketing/advertising campaigns and related services/content. Spray Net retains the right to require franchisees to spend any portion of these funds on products or services they direct or approve, or on services that franchisees must acquire from an approved supplier, which currently includes Spray Net.
Spray Net franchisees must spend at least 75% of their local advertising requirement on monthly digital marketing services, referred to as the "Digital Marketing Spend." This amount is paid to Spray Net on the first of each month, and Spray Net may provide the applicable digital marketing services or engage a supplier to provide such services. The annual minimum Digital Marketing Spend is specified in a chart, and franchisees must spend at least the amount divided by twelve each month. The FDD does not specify the consequences of failing to meet the local advertising requirement.