How does the Spray Net franchisee terminate the EFT authorization?
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
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the EFT authorization form allows Spray Net or its designee to withdraw funds from the franchisee's bank account for various fees and payments. This includes royalty fees, marketing contributions, technology fees, and other amounts due under the Franchise Agreement. The withdrawals typically occur on a weekly basis or as specified in writing by Spray Net.
The EFT authorization remains in effect until terminated in writing by Spray Net. The franchisee must provide Spray Net with a voided check to set up the bank and transit numbers for the account. This means that the franchisee cannot unilaterally terminate the EFT authorization.
This arrangement gives Spray Net significant control over the franchisee's funds, as the franchisee is dependent on Spray Net to terminate the authorization. A prospective franchisee should seek clarification from Spray Net regarding the conditions under which Spray Net would agree to terminate the EFT authorization and whether there are any circumstances under which the franchisee can request termination.