In what currency are Gross Sales and Gross Bookings disclosed for Canadian Spray Net Businesses, and why?
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, Gross Sales and Gross Bookings for Canadian (CN) businesses are disclosed in Canadian Dollars (CAD). The FDD specifies two reasons for this. First, the sales figures were originally reported to Spray Net's affiliate by its franchisees in Canadian Dollars. Second, the currency exchange rate between the U.S. Dollar (USD) and the Canadian Dollar (CAD) is subject to constant fluctuation. The exchange rate on the issuance date of the FDD may not be the same at the time a prospective franchisee reviews the document or purchases franchise rights. As of April 15, 2024, the exchange rate was $1 USD = $1.4011 CAD.
Spray Net advises prospective franchisees to review these figures in light of the current exchange rate both when initially reviewing the FDD and when purchasing franchise rights. This is important for a U.S. resident considering investing in a Canadian Spray Net franchise, as they will need to convert the CAD figures into USD to accurately assess the potential financial performance and compare it to the costs and fees outlined in USD.
While the figures are presented in Canadian dollars, the FDD notes that U.S. franchisees typically charge and are paid more on a per-job basis than their Canadian counterparts. This difference may offset some of the impact of the currency exchange rate. Prospective franchisees should carefully consider these factors and consult with a financial advisor to understand the potential financial implications of investing in a Spray Net franchise in either the U.S. or Canada.