Does Spray Net have the right to request that a franchisee purchase advertising materials?
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 |
-
- 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).
-
- Franchisor may require that Franchisee expend any portion of the Local Advertising Requirement on services, content and other products/items that must be purchased from one (1) or more Approved Suppliers, and (ii) collect your Local Advertising Requirement and pay such Approved Supplier directly as part of its support services and control rights described hereunder.
-
- At Franchisor's option, Franchisee must ensure that: (i) the Franchised Business has a dedicated phone line for use in connection with the Franchised Business only; and (ii) the Franchised Business is listed in the appropriate Internet-based directories and Chamber(s) of Commerce that Franchisor designates. Franchisee shall obtain at least three (3) telephone numbers solely dedicated to the Franchised Business, which Franchisee shall assign to Franchisor, at Franchisor's option, upon termination, expiration, or transfer of this Agreement. Franchisee must list and advertise the telephone number(s) for the Franchised Business in the "White pages" telephone director and the classified or "yellow pages" telephone directory distributed in its trade area and under such categories as Franchisor may specify from time to time. Franchisee must place the classified directory advertisement and listings together with other Spray-Net Businesses operating within the distribution area of the directory. If a joint listing is obtained, all Spray-Net Businesses listed together shall pay a pro rata share of the cost of all advertisements and listings.
-
- Furthermore, Franchisee shall obtain listings and/or advertise with Franchisor and other franchisees of the System on electronic yellow pages directory and other online directors as Franchisor may designate, including Google Local, Google Business, Angie's List or similar online directory. In the event Franchisee does not comply with Franchisor's requests regarding such online listings or advertisement, Franchisor reserves the right to place, modify, or remove such listings and advertisements on behalf of Franchisee. For any listings or advertisements that Franchisor posts on behalf of Franchisee due to Franchisee's non-compliance under this Section, Franchisee shall promptly pay, upon demand by Franchisor, its pro rata share of the costs of such listings or advertisements. Upon termination, transfer, or expiration of this Agreement, Franchisee agrees to take any and all steps necessary to assist Franchisor in removing or assigning control of all listing under this Section to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Spray Net has specific rights regarding advertising and marketing expenditures. Spray Net reserves the right to require franchisees to spend a portion of their local advertising budget on products or services that Spray Net directs or approves. This includes services that franchisees must acquire from approved suppliers, which can include Spray Net itself.
Spray Net can also mandate that franchisees allocate a portion of their local advertising funds to services, content, and other products that must be purchased from specific approved suppliers. Furthermore, Spray Net may collect the franchisee's local advertising funds and directly pay these approved suppliers as part of its support services. This gives Spray Net significant control over how franchisees spend their advertising dollars.
Spray Net also has the right to dictate where franchisees list their businesses, including online directories and chambers of commerce. Franchisees must obtain at least three dedicated phone lines for the business, which can be assigned to Spray Net upon termination or transfer of the agreement. Additionally, franchisees must list and advertise their phone numbers in specified directories under categories designated by Spray Net, potentially requiring joint listings with other Spray Net businesses and a pro-rata share of advertising costs. If a franchisee fails to comply with Spray Net's requests for online listings or advertisements, Spray Net reserves the right to manage these listings on the franchisee's behalf.
Spray Net requires franchisees to maintain and display signage and advertising that reflects the current commercial image of the Spray Net system. Franchisees must discard and cease using any outdated or unauthorized proprietary marks or imagery upon notice from Spray Net. Franchisees are also required to display a sign indicating independent ownership and operation. These stipulations ensure that all advertising and marketing efforts align with Spray Net's brand standards and guidelines.