In what currency did the CN Businesses report their financial data to Spray Net?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
material differences between the size, geography, and demographics aspects of your Designated Territory(ies) as compared to those of the CN Businesses.
Whenever "Gross Sales" and "Gross Bookings" are disclosed for CN Businesses, they are disclosed in Canadian Dollars because (i) that is how the sales were reported to us by our affiliate or our affiliate's franchisees; and (ii) the currency exchange rate between United States currency (the U.S. Dollar or "USD") and Canadian currency (the Canadian Dollar or "CAD") is constantly in flux such that the rate as of the Issuance Date of this Disclosure Document may not be the same rate at the time you are disclosed with this Disclosure Document and/or purchase franchise rights from us. For this reason, we encourage you to review these figures in light of the current exchange rate when you are disclosed with this Disclosure Document and when you purchase franchise rights from us. While there is a difference in the exchange rate, as reflected below in this Item 19, our U.S. franchisees charge and are typically paid more on a per-job basis than the CN Business
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 63–72)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the CN Businesses reported their financial data in Canadian Dollars (CAD). The FDD specifies that whenever "Gross Sales" and "Gross Bookings" are disclosed for CN Businesses, they are disclosed in Canadian Dollars because that is how the sales were reported to Spray Net by their affiliate or their affiliate's franchisees.
The document also mentions that the currency exchange rate between the U.S. Dollar (USD) and the Canadian Dollar (CAD) is constantly changing. As of the issuance date of the FDD (April 15, 2024), the exchange rate was $1 USD = $1.4011 CAD, according to www.bankofcanada.ca. Spray Net encourages prospective franchisees to review these figures in light of the current exchange rate when they are disclosed with the Disclosure Document and when they purchase franchise rights.
Spray Net advises potential franchisees to consult with their own accounting, business, and legal advisors to assist in preparing budgets and projections, and to assess the likely or potential financial performance of the franchise. They also encourage potential franchisees to contact existing franchisees to discuss their experiences with the system and their franchise business. Understanding the currency in which financial data is reported is crucial for accurate financial planning and comparison.