What is the 'Production Fee' for a Spray Net franchise, and what does it cover?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, franchisees are required to pay a 'Production Fee' as part of their marketing expenses. This fee covers the administrative cost of placing digital advertising. The amount of the Production Fee varies depending on the number of Designated Territories a franchisee purchases and the number of years the franchise has been in operation. The fee is subject to a cap or maximum amount.
The FDD provides several tables showing the 'Annual Production Fee Cap (collected monthly)' for different scenarios. For example, one table shows that for a franchisee in their first year of operation, the annual Production Fee cap is $6,300, increasing to $9,000 in the second year, and remaining at $9,000 from the third through tenth years of operation. Another table shows a different fee structure, with the Production Fee starting at $8,400 in the first year, increasing to $12,000 in the second year, and remaining at $12,000 from the third through seventh years. A third table lists the Production Fee as $9,660 for the first year, $13,800 for the second year, and $13,800 from the third through tenth years.
Prospective Spray Net franchisees should carefully review these tables in Item 6 of the FDD to understand which fee structure applies to their specific situation based on the number of territories they plan to purchase. It's important to note that these fees are collected monthly and contribute to the overall marketing expenses required to operate the franchise. Franchisees should also confirm with Spray Net whether these fees are subject to change and how those changes will be communicated.