What is the Local Advertising Requirement for a Spray Net franchisee based on?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
D. Local Advertising Requirement. Franchisee shall comply with the following requirements in regard to local advertising:
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Franchisee must expend certain minimum amounts on advertising and promoting the Franchised Business, based on the number of Designated Territories that Franchisee purchases and the length of time the Franchised Business has been in operation, within the Designated Territory(ies) in accordance with the advertising/marketing plan that Franchisor approves (the "Local Advertising Requirement").
Franchisee must annually spend the following amounts pursuant to the Local Advertising Requirement:
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the Local Advertising Requirement is based on two factors: the number of Designated Territories the franchisee purchases and the length of time the franchised business has been in operation. The franchisee must spend certain minimum amounts on advertising and promoting the Spray Net business within the Designated Territory(ies) in accordance with the advertising/marketing plan that Spray Net approves.
Spray Net retains significant control over how franchisees spend their local advertising funds. Spray Net can require franchisees to spend portions of their Local Advertising Requirement on products, services, or Approved Suppliers that Spray Net directs or approves, which may include Spray Net itself. Spray Net may also collect the Local Advertising Requirement directly from the franchisee and pay an Approved Supplier on the franchisee's behalf.
Spray Net also specifies certain advertising channels franchisees must use. Franchisees must list their business in internet-based directories and Chambers of Commerce that Spray Net designates. Franchisees must obtain at least three dedicated phone lines for the business. They must also advertise in the "White pages" and "yellow pages" telephone directories under categories Spray Net specifies, ideally with other Spray Net businesses in the area sharing the costs pro rata. Franchisees must also list or advertise on electronic yellow pages and online directories like Google Local or Angie's List as Spray Net directs, and Spray Net reserves the right to manage these listings if the franchisee does not comply with their requests.
In addition to the Local Advertising Requirement, Spray Net franchisees must also make an Initial Marketing Investment. This investment ranges from $15,000 to $25,000 and is designed to promote the franchised business within the Designated Territory using Spray Net's Approved Suppliers and System standards. Spray Net has the right to collect this Initial Marketing Investment upon execution of the Franchise Agreement or any time thereafter with written notice.