Are the fees outlined in Item 6 of the Spray Net FDD generally refundable?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
- Generally. Unless otherwise stated this Item, all fees noted in this Item 6 are uniformly imposed and are payable to us and are non-refundable. All fees due under the Franchise Agreement shall be collected by us through any method that we determine. All fees are currently collected via GoCardless. You must execute certain forms or take certain stepsthat authorize us to collect all fees by whatever method we determine. All fees in this Item 6 are subject to increase due to inflation as measured by the United States Consumer Price Index. We may integrate a payment processing feature into our Business
Source: Item 6 — > **ITEM 6 OTHER FEES (FDD pages 15–29)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the fees outlined in Item 6 are generally non-refundable. The FDD states that unless otherwise specified in Item 6, all fees are uniformly imposed and payable to Spray Net and are non-refundable.
This means that a prospective Spray Net franchisee should carefully consider their financial situation and business plan before committing to any fees, as they will likely not be able to recover these costs if they change their mind or encounter financial difficulties. It is important to note that all fees are collected via GoCardless, and the franchisee must authorize Spray Net to collect all fees through this method.
Additionally, the FDD mentions that all fees in Item 6 are subject to increase due to inflation as measured by the United States Consumer Price Index. This means that the fees could increase over time, which could impact the franchisee's profitability. Spray Net may also integrate a payment processing feature into their Business Management Software in the future, and franchisees will be required to use that for payment processing and be responsible for all monthly terminal fees and payment processing fees.
Given this information, it is crucial for potential Spray Net franchisees to fully understand all the fees involved, their due dates, and the circumstances under which they may be required to pay additional fees, such as the Unauthorized Use or Disclosure fee of $1,000 or Non-Compliance Fees ranging from $250 to $1,000 depending on the instance of non-compliance.