What is the timeframe for the Spray Net franchisee to expend the 'Initial Marketing Investment'?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
g fee of Fifteen Thousand Dollars ($15,000) (the "Initial Training Fee") prior to or around the time Franchisee initially launches its Franchised Business. The Initial Training Fee is deemed fully earned and non-refundable upon signing this Agreement.
-
- Initial Marketing Investment. Upon execution of this Agreement, Franchisee must expend a specified amount on certain digital and other marketing efforts within the two (2) months prior to the Franchised Business opening (the "Initial Marketing Investment"). The Initial Marketing Investment will be paid to Franchisor, an Approved Supplier, or any other third party that Franchisor designates, and Franchisor will use and/or direct all or a portion of these funds as Franchisor determines appropriate in its discretion to promote and market the Franchised Business within the Designated Territory(ies), including directing funds to suppliers Franchisor has designated approved for such services. If Franchisee purchases more than one (1) Designated Territory, Franchisee must spend the following amounts in the first two (2) months of each year of operation in addition to the Initial Marketing Investment spent prior to opening the Franchised Business:
| Period(s) | 1 Designated | 2 Designated | 3 Designated |
|---|---|---|---|
| Territory | Territories | Territories | |
| First Year of Operation | $300 ,000 | $350,000 | $375 ,000 |
| Second Year of Operation | $431 ,250 | $475 ,000 | $575 ,000 |
| Third Year of Operation | $506 ,250 | $600 ,000 | $725 ,000 |
| Fourth Year of Operation | $531 ,563 | $700 ,000 | $800 ,000 |
| Fifth Year of Operation | $558 ,141 | $735 ,000 | $860 ,000 |
| Sixth Year of Operation | $586,048 | $771,750 | $924,500 |
| Seventh Year of |
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the franchisee must spend the Initial Marketing Investment within a specific timeframe. Upon the execution of the Franchise Agreement, the franchisee is required to expend a specified amount on digital and other marketing efforts in the two months leading up to the opening of their Spray Net franchise.
The Initial Marketing Investment, which ranges from $15,000 to $25,000, is designed to promote the new Spray Net franchise within its designated territory. These funds are typically collected by Spray Net, who then allocates them to approved suppliers and/or uses them according to the company's standards for initial marketing campaigns. Spray Net has the right to collect this investment upon the execution of the agreement or at any point thereafter with written notice.
If a Spray Net franchisee purchases more than one designated territory, they must continue to spend additional amounts in the first two months of each year of operation. This is in addition to the initial marketing investment spent prior to opening the franchise. This ongoing investment ensures continued promotion and marketing efforts for each territory.