What sections of the Spray Net Franchise Agreement detail the franchisee's advertising obligations?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
not limited to, initial and ongoing training, and operations support.
Advertising and Marketing
Generally
All advertising and promotion that you use in connection with your Franchised Business must be approved by us and conform to the standards and requirements that we specify. We may make available to you from time to time, at your expense, certain promotional materials, including digital content, social media and other "profile" templates, merchandising materials, point-of-purchase materials, special promotions, and similar advertising and promotional materials. Subject to applicable laws, you must participate in certain promotions and advertising programs that we establish as an integral part of our System, provided these activities do not contravene regulations and laws of appropriate governmental authorities. (Franchise Agreement, Section 9(A)).
If you wish to use any advertising or promotional materials other than those that we have previously approved or designated within the preceding 12 months, then you must submit the materials you wish to use to us for our prior written approval at least 20 days prior to publication. We will use commercially reasonable efforts to notify you of our approval or disapproval of your proposed materials within 15 days of the date we receive the materials from you. If you do not receive our written approval during that time period, however, the proposed materials are deemed disapproved and you may not use such materials. Once approved, you may use the proposed materials for a period of 90 days, unless we: (i) prescribe a different time period for use; or (ii) require you to discontinue using the previously-approved materials in writing. We may require you to discontinue the use of any advertising 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 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 36–37)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Section 9(A) of the Franchise Agreement generally outlines the advertising and promotion standards. All advertising materials used by a franchisee must be approved by Spray Net and conform to their specified standards. Spray Net may provide promotional materials at the franchisee's expense, and franchisees must participate in advertising programs established by Spray Net as part of their system, provided these activities comply with applicable laws and regulations.
Section 9(B) of the Franchise Agreement further details the approval process for advertising materials. If a franchisee wishes to use materials not previously approved within the last 12 months, they must submit them for approval at least 20 days before publication. Spray Net will then use commercially reasonable efforts to notify the franchisee of their decision within 15 days. Failure to receive written approval within this timeframe means the materials are deemed disapproved. Once approved, the materials can be used for 90 days, unless Spray Net specifies a different period or requires discontinuation of the materials in writing. Spray Net retains the right to require franchisees to stop using any advertising or marketing material, even those previously approved, at any time.
Item 23 of the FDD also mentions advertising obligations. Specifically, it states that Spray Net will review and approve or reject any advertising or marketing materials proposed by the franchisee in connection with the Franchised Business, as described more fully in Section 9 of the Franchise Agreement. Additionally, franchisees must list and advertise the telephone number(s) for the Franchised Business in the "White pages" and classified or "yellow pages" telephone directories, as well as on electronic yellow pages and other online directories designated by Spray Net, such as Google Local, Google Business, and Angie's List. Spray Net reserves the right to manage these online listings and advertisements on behalf of the franchisee if the franchisee does not comply with their requests.