Where can I find more details about the Initial Franchise Fee for a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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A. Franchise Agreement (One Designated Territory)
| Type of Expenditure (1) | Amount Low | Amount High | Method of Payment | When Due | To Whom Payment is to be Made | |-------------------------------------------------------|---------------|----------------|----------------------|------------------------------------------|-------------------------------------------------------| | Initial Franchise Fee(2) | $54,500 | $54,500 | Lump sum. | Upon signing of a Franchise Agreement | Us | | Initial Training Fee(3) | $15,000 | $15,000 | Lump sum. | Upon signing of a Franchise Agreement | Us | | Investment(4) Initial Marketing | $20,000 | $30,000 | Lump sum. | Upon signing of a Franchise Agreement | Us, Affiliate and/or other Approved Supplier | | Bookkeeping Service (Setup & First 3 Months)(5) | $1,775 | $1,775 | As agreed. | As agreed | Approved Suppliers | | Business Management | $1,050 | $1,050 | As agreed. | Monthly after opening | Us | | Software (First 3 Months) | | | | for business. | | | Call Center (First 3 Months) | $870 | $870 | Lump sum. | Monthly after opening for business. | Us | | Equipment(6) | $25,000 | $35,000 | Lump sum. | As agreed | Us and Approved Suppliers | | Kit(7) Production Supplies | $10,700 | $11,500 | Lump sum. | Prior to opening | Us and Approved Suppliers |
| Type of Expenditure (1) | Amount Low | Amount High | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|---|
| Sales Kit(8) | $7,500 | $8,500 | Lump sum. | Prior to opening | Us and Approved Suppliers |
| Pick-Up / Approved Vehicle | $3,000 | $7,500 | Lump sum. | As agreed | Approved |
| Package(9) | Supplier | ||||
| Permits, Deposits, Business Licenses, Legal and Accounting Fees(10) | $2,000 | $3,500 | As agreed. | As incurred | State and regulatory agencies and third-parties. |
| Travel and Living Expenses | $2,000 | $4,000 | As agreed. | As incurred | Third-parties. |
| during Initial Training(11) | |||||
| Insurance(12) | $3,500 | $5,500 | As agreed. | As incurred | Insurance carrier. |
| Marketing Kit(13) | $5,000 | $8,000 | Lump sum. | Upon signing of a Franchise Agreement | Approved Supplier(s) and Us |
| (First 3 Months)(14) | $120 | $120 | As agreed. | Monthly after opening | Us |
| Spray-Pal | for business. | ||||
| Computer Hardware(15) | $1,000 | $2,000 | As agreed. | As incurred | Us |
| Approved Vehicle –Lease | $0 | $3,600 | As agreed. | As incurred | Third-Party |
| Payments for 3 Months(16) | Lessor | ||||
| Home Show Booth(17) | $6,000 | $8,000 | Lump sum. | As agreed | Us or Approved Supplier |
| Mobile Services Unit(18) | $2,000 | $15,000 | As agreed | As agreed | Approved Suppliers |
| Additional Funds for First 3 Months(19) | $30,000 | $40,000 | As agreed. | As incurred. | Personnel; Approved Suppliers; Lessor of Equipment Package; |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 29–33)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, details regarding the initial franchise fee can be found in Item 5. Item 7 also provides an overview of the initial franchise fee. The initial franchise fee for a single designated territory is $54,500. For two designated territories, the initial franchise fee is $99,500, and for three designated territories, it is $144,500. This fee is payable in a lump sum upon signing the Franchise Agreement and is paid to Spray Net.
Item 7 includes a table outlining the estimated initial investment required to start a Spray Net franchise. This table lists the initial franchise fee alongside other expenses such as the initial training fee, initial marketing investment, bookkeeping service, equipment, and production supplies kit. The initial training fee is $15,000, the initial marketing investment ranges from $20,000 to $30,000, and the bookkeeping service setup and first three months cost $1,775. Equipment costs range from $25,000 to $35,000, and the production supplies kit costs between $10,700 and $11,500.
The document also clarifies the conditions under which the initial franchise fee may or may not be refundable. If a franchisee withdraws from or does not complete the initial training program, the initial franchise fee is non-refundable. However, if Spray Net terminates the franchise agreement because the franchisee does not complete the initial training program to their satisfaction, Spray Net may return the initial franchise fee and 50% of the training fee in exchange for a release and confidentiality agreement. This provides some potential recourse for franchisees who encounter issues during training, although it is contingent on Spray Net's discretion and the franchisee's agreement to a release and confidentiality agreement.