What is the cumulative franchise fee for a Spray Net franchise if the franchisee purchases 3 designated territories?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
n of trademarks and service marks, supplies, and other products and materials, as necessary to meet Franchisor's then-current System standards, specifications, and design criteria for a newly opened Franchised Business.
4. FEES AND PAYMENTS
- A. Fees. In consideration of the rights and license granted herein, Franchisee agrees and acknowledges that it must pay the following amounts to Franchisor or, as noted below, Franchisor's designated supplier:
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- Initial Franchise Fee. Upon execution of this Agreement, Franchisee must pay Franchisor an initial franchise fee amounting to Fifty-Four Thousand Five-Hundred Dollars ($54,500) (the "Initial Franchise Fee") for a single Designated Territory. If you are granted the right to operate your Franchised Business in more than one Designated Territory, each additional Designated Territory will have its own Initial Franchise Fee according to the table below, and you will pay Franchisor the Cumulative Franchise Fee based on the table below upon execution of this Agreement. Upon approval by Franchisor, Franchisee may also purchase additional population for $0.66 per additional household. The fees you pay under this Section 4(A)(1) shall be deemed fully earned and non-refundable under any circumstances, except as specifically stated herein, upon payment. If Franchisee does not complete Franchisor's initial training program to Franchisor's satisfaction, Franchisor may terminate this Agreement and return the Initial Franchise Fee and fifty percent (50%) of the Training Fee to Franchisee in exchange for a release and confidentiality agreement. If Franchisee withdraws from Franchisor's initial training program or otherwise does
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Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the initial franchise fee for a single designated territory is $54,500. If a franchisee is granted the right to operate in more than one designated territory, each additional territory will have its own initial franchise fee according to the table provided in the document. The franchisee will pay Spray Net the cumulative franchise fee based on this table upon execution of the agreement.
The FDD states that the fees paid under this section are deemed fully earned and non-refundable upon payment, except as specifically stated in the document. If a franchisee does not complete Spray Net's initial training program to the franchisor's satisfaction, Spray Net may terminate the agreement and return the initial franchise fee and 50% of the training fee to the franchisee in exchange for a release and confidentiality agreement. However, if the franchisee withdraws from the initial training program or otherwise does not complete it, the initial franchise fee is non-refundable.
While the initial franchise fee for a single territory is provided, the excerpt does not include the table that details the fees for additional territories or the cumulative franchise fee for multiple territories. To determine the exact cumulative franchise fee for purchasing three designated territories, a prospective franchisee should consult the full 2025 Spray Net Franchise Disclosure Document and review the table specifying the fees for additional territories. It would also be prudent to discuss this directly with the franchisor to confirm the current fee structure and any potential discounts or incentives for purchasing multiple territories.