Why were some Canadian Spray Net Businesses excluded from the financial performance representation?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Below, we disclose certain historical performance information regarding the thirteen (13) CN Businesses that were open and operating for a period of one (1) year as of December 31, 2024. We have excluded seven (7) CN Businesses that did not operate for a full year as of December 31, 2024. We have also excluded five (5) CN Businesses that did not report their complete financials to us. The sizes of Designated Territories that we expect and intend to award under this Disclosure Document are disclosed more fully in Item 12, and we expect there to be material differences between the size, geography, and demographics aspects of your Designated Territory(ies) as compared to those of the CN Businesses.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 63–72)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, certain Canadian Spray-Net businesses ('CN Businesses') were excluded from the financial performance representation for specific reasons. The financial performance representation includes data from thirteen CN Businesses that were open and operating for at least one year as of December 31, 2024, and met other system criteria outlined in the document.
However, seven CN Businesses were excluded because they did not operate for a full year as of December 31, 2024. Additionally, five CN Businesses were excluded because they did not report their complete financials to Spray Net. This means that the financial data from these excluded businesses was not considered reliable or representative enough to be included in the financial performance representation.
Spray Net also notes that there may be material differences between the size, geography, and demographics of a new franchisee's designated territory compared to those of the CN Businesses. Therefore, prospective franchisees should consider these factors and consult with their own advisors to assess the potential financial performance of their specific franchise location.