Is Spray Net required to spend any amount on advertising in a franchisee's Designated Territory?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
or marketing material, including materials we previously approved, at any time. (Franchise Agreement, Section 9(B)). Except as otherwise provided in this Item, we are not required to spend any amount on advertising in your Designated Territory.
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 |
| Fourth Year of Operation | $56,700 | $75,600 | $96,000 | |---|---|---|---| | Fifth Year of Operation | $59,535 | $79,380 | $100,800 | | Sixth Year of Operation | $62,511.75 | $83,349 | $105,840 | | Seventh Year of Operation | $65,637.34 | $87,516.45 | $111,132 | | Eighth Year of Operation | $68,919.20 | $91,892.27 | $116,688.60 | | Ninth Year of Operation | $72,365.16 | $96,486.89 | $122,523.03 | | Tenth Year of Operation | $75,983.42 | $101,311.23 | $128,649.18 | As of the Issuance Date, we require you to expend your Local Advertising Requirement funds on our Approved Suppliers (currently, third-parties directly with the right – but not obligation – to use us for certain services) for our System-approved marketing/advertising campaigns and related services/content. We reserve the right to require that you expend any portion of these funds on (a) products or services we direct or approve, or (b) services that you must acquire from an Approved Supplier (which currently includes us).
We must approve all advertising in writing before it is used in connection with the Franchised Business, including all use of the Proprietary Marks. (Franchise Agreement, Section 9). We do not require you to participate in local or regional advertising cooperatives or reserve the right to require such participation.
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 is generally not required to spend any amount on advertising in a franchisee's designated territory. However, franchisees are required to expend certain minimum amounts on local advertising and promoting their franchised business within their designated territories, based on the number of territories purchased and the length of time the business has been in operation.
Spray Net requires franchisees to spend at least 75% of their Local Advertising Requirement funds on monthly digital marketing services through Spray Net's approved suppliers. The amount required for the Digital Marketing Spend is paid to Spray Net on the first of each month, and Spray Net may provide the digital marketing services or engage a supplier to provide such services.
Prior to opening their Spray Net franchise, franchisees must also expend a minimum Initial Marketing Investment of $20,000. Spray Net will collect between $1,000 and $5,000 of these funds directly from the franchisee upon execution of the Franchise Agreement. These funds must be spent in the 1-2 months prior to the launch of the franchise and shortly thereafter, at which point the Local Advertising Requirement commences. Spray Net may also require that any portion of the Initial Marketing Investment be spent on marketing/advertising/promotional services and/or items sourced from their approved suppliers.