What conditions must a Spray Net franchisee and their proposed transferee meet before Spray Net will evaluate or approve a transfer proposal?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Name of Fee | Amount1 | Due Date | Remarks |
|---|---|---|---|
| Business Management Software | Then-current software fee charged by us or other provider we designate Currently, $350/month, plus 0.25% of Gross Sales generated by the Franchised Business | Monthly based, in part, on the Gross Sales generated in the prior calendar month. Currently collected via GoCardless. | This amount is paid to our Approved Supplier (currently, us) for the Business management and project/sales tracking software that we have developed and branded for use in connection with the System (the "Business Management Software"). |
| Renewal Fee | $10,000 | At the time of your renewal request. | You must meet certain criteria before we will approve any request you make to renew your franchise. |
| Transfer Fee | $10,000 | At the time of your assignment or transfer proposal. | You and your proposed transferee must meet certain other conditions before we can evaluate and/or approve any transfer proposal you make in connection with (a) your franchise or Franchise Agreement, and/or (b) any ownership interest in Franchisee (if an entity). The Transfer Fee applies to all transfers regardless of whether you are transferring the entire Franchised Business or just a portion of it (i.e., one of your Designated Territories). If you are an individual and wish to assign the franchise and Franchise Agreement to an entity that is wholly owned by you and formed for purposes of owning the Franchised Business, then we may only charge you the legal fees and other costs we incur in connection with evaluating and memorializing our consent to the assignment (and any conditions associated with the transfer). The Transfe |
Source: Item 6 — > **ITEM 6 OTHER FEES (FDD pages 15–29)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, both the franchisee and the proposed transferee must meet certain conditions before Spray Net will consider or approve a transfer proposal. Item 6 specifies that a $10,000 transfer fee is due at the time of submitting the assignment or transfer proposal. This fee is required for all transfers, whether the entire franchise or just a portion of it is being transferred. However, if an individual franchisee is transferring the franchise to an entity wholly owned by them for the purpose of owning the Spray Net business, the transfer fee may be limited to the legal fees and other costs Spray Net incurs to evaluate and document the consent to the assignment. The transfer fee is subject to state law.
This means that if you, as a Spray Net franchisee, decide to sell your franchise, you will need to pay Spray Net a $10,000 transfer fee when you submit the transfer request. This fee covers Spray Net's costs of reviewing the proposed transfer. The fee is required whether you are selling your entire Spray Net business or just a portion of your territory.
However, there is an exception: if you are simply transferring ownership to a company that you own entirely, the fee may be reduced to cover Spray Net's legal and administrative costs. This could save you a significant amount of money if you decide to incorporate your Spray Net franchise business. Prospective franchisees should be aware of the transfer fee and the conditions that must be met, as these can impact the financial aspects of selling the franchise in the future. It is also important to note that the transfer fee is subject to state law, which means it could vary depending on the location of the franchise.
It is typical in the franchise industry to have transfer fees to compensate the franchisor for their time and expenses in reviewing and approving a transfer. The specific amount of the fee can vary widely depending on the brand and the complexity of the transfer process. Franchisees should carefully review the transfer provisions in the Franchise Agreement to fully understand their obligations and the franchisor's rights in the event of a transfer.