How is the Local Advertising Requirement fee amount determined for a Spray Net franchise?
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, the Local Advertising Requirement is an annual amount that a franchisee must spend on local advertising for their franchised business. The amount varies depending on how long the franchise has been in operation.
The FDD provides a table that outlines the specific amounts required for Local Advertising Requirement, Digital Marketing Spend, Production Fee Cap, and Brand Fund Contribution for the first ten years of operation. For example, during the first year, the Annual Local Advertising Requirement is $40,000, increasing to $46,000 in the second year, $54,000 in the third year, $56,700 in the fourth year, and $59,535 in the fifth year. By the tenth year, the Annual Local Advertising Requirement reaches $75,983.42.
It is important to note that 75% of the Local Advertising Requirement must be spent on digital marketing on a monthly basis. Spray Net is currently the only Approved Supplier for digital marketing, and franchisees are required to pay Spray Net's then-current Production Fee for managing the digital marketing services, subject to a maximum amount. The franchisee must also pay a Brand Fund Contribution each month. These fees are subject to increase due to inflation as measured by the United States Consumer Price Index.