What fee does Spray Net charge for a dishonored check or failed electronic transfer?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
rge a late fee amounting to $500 in connection with any payment that is late or that Franchisor is unable to collect via Franchisee's Payment Account. Entitlement t
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, if a franchisee's check is dishonored or an electronic transfer fails, Spray Net will charge a fee. This fee is $50 for each occurrence. This means that if a franchisee attempts to make a payment to Spray Net, but the payment is rejected by the bank due to insufficient funds or other reasons, the franchisee will incur this additional charge.
This type of fee is relatively standard in franchising and other business contexts. It is designed to cover the administrative costs and potential losses incurred by Spray Net when a payment is not successfully processed. Franchisees should ensure they have sufficient funds available when making payments to avoid this fee.
It's important for prospective Spray Net franchisees to factor this potential fee into their financial planning. While it may seem like a minor detail, repeated instances of dishonored checks or failed electronic transfers can add up and impact the franchisee's profitability. Therefore, maintaining accurate bank information and ensuring sufficient funds are available for payments are crucial for managing costs effectively.