When is the Production Fee due for a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
- Marketing Expenses (Local Advertising Requirement, Digital Marketing Spend, Production Fee, and Brand Fund Contribution). 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
"Production Fee"), which covers the administrative cost of placing the digital advertising and is subject to a cap or maximum amount. You must also pay us a Brand Fund Contribution each month. The Local Advertising Requirement, Digital Marketing Spend, Production Fee, and Brand Fund Contribution are reflected in the charts below, based on the number of Designated Territories you purchase.
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 Production Fee is collected monthly. The Production Fee covers the administrative cost of placing digital advertising. The amount of the Production Fee is subject to a cap or maximum amount.
The specific amount of the Production Fee depends on the number of designated territories a franchisee purchases and the number of years the franchise has been in operation. For example, a Spray Net franchisee in their first year of operation with one set of designated territories would pay an annual Production Fee capped at $6,300, which is collected monthly. A franchisee with a different territory agreement would have a different annual cap.
Spray Net franchisees should note that the fees are collected via GoCardless, and they must authorize Spray Net to collect fees automatically. Also, all fees in Item 6, including the Production Fee, are subject to increase due to inflation as measured by the United States Consumer Price Index. Furthermore, Spray Net may integrate a payment processing feature into their Business Management Software in the future, and franchisees will be required to use that for payment processing and be responsible for all monthly terminal fees and payment processing fees.