What must a Spray Net franchisee do if there is a change in their banking relationship?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Effective as of the date of the signature below, [Franchisee Name] its affiliates under the franchise agreement dated thefranchised business located at: Business"): (i)all Royalty Fees; (ii) Fund marketing materials or other supplies or inventory designee) as set forth in the Franchise Agreement. (the "Franchisee") hereby authorizes SPRAY-NET INC. (the "Company") or its designee to withdraw funds from the above-referenced bank account, electronically or otherwise, to cover the following payments that are due and owing Company or (the "Franchise Agreement") for (the "Franchised Contributions, Initial Marketing Investment, as well as other advertising/marketing amounts that Franchisee is required to expend in connection with the Franchised Business; (iii) any amounts due and owing the Company or its affiliates in connection with technology, that is provided by Company or its affiliates; and (iv) all other fees and amounts due and owing to Company or its affiliates under the Franchise Agreement. Franchisee acknowledges each of the fees described above may be collected by the Company (or its The parties further agree that all capitalized terms not specifically defined herein will be afforded the definition they are given in the Franchise Agreement. the above-referenced account. Such withdrawals shall occur on a weekly basis, or on such other schedule as Company shall specify in writing. This authorization shall remain in full force and effect until terminated in writing by Company. [Franchisee Name] shall provide Company, in conjunction with this authorization, a voided check from AGREED: [INSERT SPRAY-NET INC. NAME] Carmelo (Print): Marsala, President Its: Please attach a voided blank check, for purposes of setting up Bank and Transit Numbers.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, a franchisee must provide Spray Net with a voided check from the above-referenced account when setting up bank and transit numbers for EFT (Electronic Funds Transfer). This is part of the EFT authorization process, allowing Spray Net to withdraw funds from the franchisee's bank account for various fees.
This authorization remains in effect until Spray Net terminates it in writing. The franchisee agrees that Spray Net can collect fees weekly or on another schedule specified in writing by Spray Net. These withdrawals cover royalty fees, marketing contributions, initial marketing investments, technology fees, and any other amounts owed to Spray Net or its affiliates under the Franchise Agreement.
In practical terms, this means a Spray Net franchisee must maintain an active bank account and promptly inform Spray Net of any changes to their banking information to ensure uninterrupted payment processing. Failure to do so could result in a breach of the franchise agreement and potential penalties. It is crucial for prospective franchisees to understand the implications of the EFT authorization and their responsibilities regarding banking relationships with Spray Net.