What is the required monthly Brand Development Fund contribution for a Spray Net franchise, expressed as a percentage of Gross Sales?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established a brand development Fund for the benefit of the System and brand generally. Your required monthly Fund Contribution is 2% of your Gross Sales, subject to a minimum amount based on the number of Designated Territories that you purchase and the length of time your Franchised Business has been in operation. Your monthly Fund Contribution is equal to the applicable amount for "Annual Fund Contribution" in the below chart divided by twelve (12).
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 contribute to a Brand Development Fund. The required monthly contribution is 2% of the franchisee's Gross Sales. However, this is subject to a minimum amount that depends on the number of Designated Territories purchased and how long the franchised business has been in operation.
The FDD specifies that the monthly fund contribution is calculated by dividing the applicable 'Annual Fund Contribution' amount (presumably found in a chart within the FDD, though not included in the provided excerpts) by twelve. This implies that the minimum contribution is calculated annually and then divided into monthly installments.
Spray Net retains control over how the Brand Development Fund is used, including the creative concepts, materials, geographic placement, market placement and media allocation. The fund is used to enhance the image of the Spray Net system through advertising, marketing, public relations, and promotional programs. The franchisor is not required to spend any of the franchisee's fund contributions in the franchisee's designated territory.