What is a 'CN Business' in the context of Spray Net franchises?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Our affiliate, SN Canada, has offered and sold franchises for the right to own and operate Businesses that are (i) operated in a substantially similar manner to the Franchised Business being offered in this Disclosure Document utilizing the same or substantially similar Proprietary Marks and System that we license to you under your Franchise Agreement, and (ii) provided initial and ongoing training and other assistance that is substantially similar to the training and support you will be entitled to receive under your Franchise Agreement in connection with your Franchised Business (each, a "CN Business"). In light of the foregoing, there is a reasonable basis to include certain historical financial information regarding the CN Businesses that (i) were actively owned and operated throughout the relevant measurement periods and (ii) meet certain other System criteria found in this Disclosure 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, a 'CN Business' refers to a Spray-Net franchise operated in Canada by SN Canada, a Spray Net affiliate. These businesses operate in a substantially similar manner to the franchises offered in the United States, utilizing similar proprietary marks and systems licensed under the Franchise Agreement.
CN Businesses also receive initial and ongoing training and assistance that is substantially similar to what U.S. franchisees receive. The FDD includes historical financial information regarding these CN Businesses because of their operational similarities to the U.S. franchises.
However, the FDD notes that there may be material differences between the size, geography, and demographics of the Designated Territories of CN Businesses compared to those offered in the United States. Additionally, financial data for CN Businesses is reported in Canadian Dollars (CAD), requiring prospective franchisees to consider currency exchange rates when reviewing this information. The exchange rate as of April 15, 2024, was $1 USD = $1.4011 CAD.