In what currency is the financial data for the CN Businesses reported 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 financial data for CN Businesses (Canadian Spray-Net Businesses) is reported in Canadian Dollars (CAD). The document specifies that Gross Sales and Gross Bookings for CN Businesses are disclosed in CAD because that is how the sales were reported to Spray Net by their affiliate or their affiliate's franchisees.
Spray Net includes this information due to the fluctuating exchange rate between the U.S. Dollar (USD) and the Canadian Dollar (CAD). The FDD indicates that the exchange rate on April 15, 2024, was $1 USD = $1.4011 CAD. Spray Net advises prospective franchisees to review these figures in light of the current exchange rate both when they receive the disclosure document and when they purchase franchise rights.
This is important for potential Spray Net franchisees in the United States because it means they need to consider the currency exchange rate when evaluating the financial performance of the Canadian businesses. While the Canadian businesses' gross sales are presented in Canadian dollars, the FDD also notes that U.S. franchisees typically charge and are paid more per job than the Canadian businesses, which could offset some of the currency conversion considerations. Consulting with a financial advisor is recommended to fully understand the implications of currency conversions and financial projections.