Can Spray Net modify or dissolve the Franchise Advertising Council at any time?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
We may establish an advertising council (the "Franchise Advertising Council") in the United States. The Franchise Advertising Council would serve, once established, in an advisory capacity to us with respect to certain advertising expenditures, including providing advice/guidance on how to administer the Fund. At our discretion, the Franchise Advertising Council may be comprised of our management representatives, employees, you and/or other franchisees in the System. All members of the Franchise Advertising Council shall be volunteers approved by us. We will have the right to modify or dissolve a Franchise Advertising Council at any time. (Franchise Agreement, Section 9(F)).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–49)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Spray Net retains the right to modify or dissolve the Franchise Advertising Council at any time. The Franchise Advertising Council, if established, serves in an advisory capacity to Spray Net regarding advertising expenditures, offering guidance on administering the advertising fund.
Spray Net has the discretion to determine the composition of the Franchise Advertising Council, which may include Spray Net management representatives, employees, franchisees, or a combination thereof. All members of the Franchise Advertising Council must be approved by Spray Net and serve on a volunteer basis.
This unilateral control over the council's existence and composition gives Spray Net significant flexibility in managing advertising strategies and fund allocation. While the council is intended to provide advice, Spray Net is not obligated to follow its recommendations. Prospective franchisees should recognize that Spray Net ultimately makes the final decisions regarding advertising and marketing initiatives.