How is the Spray Net franchisee's initial franchise fee, accounting for additional households, stated?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
PAYMENTS**
- A. Fees. In consideration of the rights and license granted herein, Franchisee agrees and acknowledges that it must pay the following amounts to Franchisor or, as noted below, Franchisor's designated supplier:
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- Initial Franchise Fee. Upon execution of this Agreement, Franchisee must pay Franchisor an initial franchise fee amounting to Fifty-Four Thousand Five-Hundred Dollars ($54,500) (the "Initial Franchise Fee") for a single Designated Territory. If you are granted the right to operate your Franchised Business in more than one Designated Territory, each additional Designated Territory will have its own Initial Franchise Fee according to the table below, and you will pay Franchisor the Cumulative Franchise Fee based on the table below upon execution of this Agreement. Upon approval by Franchisor, Franchisee may also purchase additional population for $0.66 per additional household. The fees you pay under this Section 4(A)(1) shall be deemed fully earned and non-refundable under any circumstances, except as specifically stated herein, upon payment. If Franchisee does not complete Franchisor's initial training program to Franchisor's satisfaction, Franchisor may terminate this Agreement and return the Initial Franchise Fee and fifty percent (50%) of the Training Fee to Franchisee in exchange for a release and confidentiality agreement. If Franchisee withdraws from Franchisor's initial training program or otherwise does
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Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the initial franchise fee, accounting for additional households, is detailed in the Data Sheet attached as Exhibit A. The initial franchise fee for a single designated territory is $54,500. If a franchisee is granted the right to operate in more than one designated territory, each additional territory has its own initial franchise fee according to a table (not included in the excerpt), and the franchisee will pay the cumulative franchise fee based on that table upon execution of the agreement.
Spray Net also allows franchisees to purchase additional population within their territory, with an additional cost of $0.66 per additional household. This provides an opportunity for franchisees to expand their potential customer base and revenue within their designated area.
The FDD specifies that the initial franchise fee is deemed fully earned and non-refundable upon payment, with limited exceptions. If a franchisee does not complete Spray Net's initial training program to the franchisor's satisfaction, the franchisor may terminate the agreement and return the initial franchise fee and 50% of the training fee, provided the franchisee signs a release and confidentiality agreement. However, if the franchisee withdraws from or does not complete the initial training program for any other reason, the initial franchise fee is non-refundable. This highlights the importance of successfully completing the training program to protect the investment in the franchise fee.
Prospective franchisees should carefully review Exhibit A, the Data Sheet, to understand how the initial franchise fee is calculated based on the number of territories and any additional households purchased. They should also consider the implications of the non-refundable nature of the fee and the conditions under which a refund may be possible.