When is the initial franchise fee for Spray Net deemed fully earned and non-refundable?

Based on the 2025 Spray Net Franchise Disclosure Document, the initial franchise fees and other initial payments are not immediately considered earned or non-refundable in certain states. Addenda for Maryland, Minnesota, North Dakota, and Virginia indicate that due to the franchisor's financial condition, these states' securities commissioners or the Virginia State Corporation Commission's Division of Securities and Retail Franchising require Spray Net to defer the collection of initial franchise fees and other initial payments.

This deferral means that Spray Net cannot collect these fees until it has completed its pre-opening obligations as defined in the franchise agreement. This provides a level of financial assurance to franchisees in these states, ensuring that Spray Net fulfills its initial responsibilities before receiving the franchise fee. For area developers in Maryland, this deferral extends until the first franchise under the multi-unit development agreement opens.

For a prospective Spray Net franchisee, this condition offers significant protection. It ensures that the franchisor is committed to providing the necessary support and fulfilling its obligations before the franchisee's investment becomes non-refundable. Franchisees should confirm with Spray Net what specific actions constitute the completion of pre-opening obligations to fully understand when the initial fees become earned and non-refundable.