What does 'Gross Booking' mean in the context of Spray Net's Item 19?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
The following definitions are applicable within this Item 19:
Gross Booking. In this Item 19, the term "Gross Booking" means the total amount of work that was booked by the applicable Businesses. This includes all jobs that the applicable Businesses were hired to perform.
Gross Sales (Production). In this Item 19, the term "Gross Sales" means all revenue generated by the CN Businesses and US Businesses, as applicable. This is also referred to as "Production." The term "Gross Sales" does not include (a) tips that customers paid to subcontractors or other personnel that are not remitted to the businesses or (b) sales tax that is collected directly from customers and paid to the appropriate taxing authority.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 63–72)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, 'Gross Booking' refers to the total dollar amount of work that was booked by Spray Net businesses. This encompasses all jobs that the businesses were contracted to perform. This figure represents the initial value of contracts secured, before any adjustments for cancellations, modifications, or uncollected revenue.
Gross Booking differs from Gross Sales (or Production), which represents the actual revenue recognized by Spray Net businesses. Gross Sales excludes items like tips paid directly to subcontractors and sales tax collected and remitted to taxing authorities. Gross Booking provides a broader view of the demand and sales activity generated by a Spray Net franchise, while Gross Sales reflects the actual revenue realized.
For a prospective Spray Net franchisee, understanding the distinction between Gross Booking and Gross Sales is crucial for financial planning and performance analysis. Gross Booking can serve as an early indicator of business activity and potential revenue, while Gross Sales provides a more accurate picture of actual earnings. Monitoring both metrics can help franchisees assess their sales effectiveness, operational efficiency, and overall financial health. The Item 19 table shows the average, median, high, and low Gross Booking for US Disclosed Businesses Open for 20 to 36 Months as of December 31, 2024, was $469,436, $499,026, $543,659, and $336,036, respectively.