How does the initial franchise fee
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Initial Franchise Fee
You must pay us an initial franchise fee amounting to $54,500 (the "Initial Franchise Fee"), which is deemed fully earned upon execution of your Franchise Agreement and we have the right to collect in a lump sum payment at that time. You may purchase additional Territories based on the table below. Upon approval by us, you may also purchase additional population between such levels for $0.66 per additional household.
| Number of Designated Territories | Total Number of Households | Initial Franchise Fee | Cumulative Franchise Fee |
|---|---|---|---|
| 1 | 75,000 | $54,500 | $54,500 |
| 2 | 150,000 | $45,000 | $99,500 |
| 3 | 225,000 | $45,000 | $144,500 |
During the fiscal year ended December 31, 2024, the Initial Franchise Fee was uniformly imposed. If you do not complete our initial training program to our satisfaction, we may terminate the franchise agreement and return the Initial Franchise Fee and 50% of the Training Fee to you in exchange for a release and confidentiality agreement.
Initial Training Fee
You must pay us a fee in connection with the initial training that we provide to you or, if Franchisee is an entity, your operating principal prior to and around the time you initially launch your Franchised Business amounting to $15,000 (the "Initial Training Fee"), which shall be deemed fully earned and non-refundable upon signing of the Franchise Agreement.
Marketing Kit
You must pay us approximately $5,000 to $8,000 for the initial package of business supplies such as uniforms, marketing brochures, letterhead and business cards (the "Marketing Kit"), which will be due and deemed fully earned upon and execution of your Franchise Agreement.
Production Supplies Kit
Prior to opening, you must purchase a "Production Supplies Kit" from us, which includes everything you need to complete your initial production training jobs. The cost of the Production Supplies Kit is approximately $10,700 to $11,500.
Sales Kit
Prior to opening, you must purchase a "Sales Kit" from us, consisting of sample boards, paint color charts, bags, polos, other clothing needs, and more.
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the initial franchise fee is $54,500 for a single designated territory. This fee is due upon the execution of the Franchise Agreement and is considered fully earned at that time. The franchisee must pay this fee in a lump sum.
If a Spray Net franchisee is granted the right to operate in more than one designated territory, each additional territory will incur its own initial franchise fee, contributing to a cumulative franchise fee. Additionally, with Spray Net's approval, a franchisee can purchase additional population within a territory for $0.66 per additional household. The initial franchise fee is generally non-refundable, but there are some exceptions.
Specifically, if the franchisee does not complete Spray Net's initial training program to the franchisor's satisfaction, Spray Net may terminate the agreement and return the initial franchise fee, along with 50% of the training fee, in exchange for a release and confidentiality agreement. However, if the franchisee withdraws from the training program or otherwise does not complete it, the initial franchise fee is non-refundable. During the fiscal year ended December 31, 2024, the initial franchise fee was uniformly imposed.