Does Spray Net reserve the right to require franchisees to spend local advertising funds on products/services it directs or approves?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
| Period | One Designated | Two Designated | Three Designated |
|---|---|---|---|
| Territory | Territories | Territ ories | |
| First Year of Operation | $30,000 | $30,000 | $30,000 |
| Second Year of Operation | $34,500 | $45,000 | $48,000 |
| Third Year of Operation | $40,500 | $54,000 | $60,000 |
| Fourth Year of Operation | $42,525 | $56,700 | $72,000 |
| Fifth Year of Operation | $44,651 | $59,535 | $75,600 |
| Sixth Year of Operation | $46,884 | $62,512 | $79,380 |
| Seventh Year of Operation | $49,228 | $65,637 | $83,349 |
| Eighth Year of Operation | $51,689 | $68,919 | $87,516 |
| Ninth Year of Operation | $54,274 | $72,365 | $91,892 |
| Tenth Year of Operation | $56,988 | $75,983 | $96,487 |
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- Franchisor reserves the right to require Franchisee to expend any portion of the Local Advertising Requirement on (a) products or services Franchisor directs or approves, or (b) services that Franchisee must acquire from an Approved Supplier (which currently includes Franchisor).
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Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Spray Net retains specific rights regarding how franchisees spend their local advertising funds. Spray Net can mandate that franchisees allocate portions of their Local Advertising Requirement towards products or services that Spray Net either directs or approves. This also extends to services that franchisees must acquire from approved suppliers, which can include Spray Net itself.
Spray Net can also require franchisees to spend portions of their local advertising budget on services, content, and other products that must be purchased from specific approved suppliers. Furthermore, Spray Net has the option to collect the Local Advertising Requirement directly from the franchisee and then pay the approved supplier on the franchisee's behalf.
This level of control gives Spray Net significant influence over the franchisee's local advertising strategies and expenditures. For a prospective franchisee, this means limited autonomy in choosing advertising methods and vendors, as a significant portion of their advertising spend may be dictated by Spray Net. It is important for potential franchisees to understand these requirements and factor them into their financial planning and marketing strategies.