What is the projected advertising expenditure for a Spray Net franchisee in their first year of operation, regardless of whether they have one, two, or three designated territories?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
| Period | Initial Marketing for 1 Designated Territory | Initial Marketing for 2 Designated Territories | Initial Marketing for 3 Designated Territories |
|---|---|---|---|
| Within two months before | $20,000 | $20,000 | $20,000 |
| Opening | |||
| During Your Second Year | $10,000 | $10,000 | $10,000 |
| of Operation |
Local Advertising Requirement
You must expend certain minimum amounts on advertising and promoting the Franchised Business, based on the number of Designated Territories that you purchase and the length of time your Franchised Business has been in operation, within the Designated Territory(ies) in accordance with the advertising/marketing plan that we approve. You must annually spend the following amounts pursuant to the Local Advertising Requirement:
| Period | One Designated | Two Designated | Three Designated |
|---|---|---|---|
| Territory | Territories | Territ ories | |
| First Year of Operation | $40,000 | $40,000 | $40,000 |
| Second Year of Operation | $46,000 | $60,000 | $64,000 |
| Third Year of Operation | $54,000 | $72,000 | $80,000 |
Prior to the opening of your Franchised Business, you must expend a minimum Initial Marketing Investment equal to $20,000. We will collect between $1,000 and $5,000 of these funds directly from you at the time you execute your Franchise Agreement or other time we designate prior to the opening of your Franchised Business. You must spend your Initial Marketing Investment in the 1-2 months prior to the contemplated launch of your Franchised Business and for a short time after that launch (at which time your Local Advertising Requirement will commence).
You must spend at least seventy-five percent (75%) of your applicable Local Advertising Requirement, which is based on the number of Designated Territories you purchase and the length of time your Franchised Business has been in operation, on monthly digital marketing services (the "Digital Marketing Spend"). You will pay us the Digital Marketing Spend on the first of each month, and we may provide the applicable digital marketing services or engage a supplier to provide such services. Your annual minimum Digital Marketing Spend is stated in the following chart. You must spend at least the applicable Digital Marketing Spend amount divided by twelve (12) each month:
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, franchisees are required to make several advertising expenditures during their first year of operation. These include an Initial Marketing Investment and a Local Advertising Requirement.
The Initial Marketing Investment is a minimum of $20,000, regardless of whether the franchisee purchases one, two, or three designated territories. Spray Net will collect between $1,000 and $5,000 of these funds directly from the franchisee upon execution of the Franchise Agreement. The franchisee must spend the Initial Marketing Investment in the 1-2 months prior to the launch of their Spray Net franchise and for a short time after that launch.
In addition to the Initial Marketing Investment, Spray Net franchisees must also meet a Local Advertising Requirement. The amount required for local advertising in the first year is $40,000, regardless of the number of territories. At least 75% of this Local Advertising Requirement must be spent on monthly digital marketing services, paid to Spray Net on the first of each month.
Therefore, a Spray Net franchisee's total advertising expenditure in their first year will be at least $60,000, comprised of the $20,000 Initial Marketing Investment and the $40,000 Local Advertising Requirement.