What is the initial franchise fee for a Spray Net franchise with 1 designated territory?
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 for a single designated territory is $54,500. This fee is payable upon the execution of the Franchise Agreement. The FDD specifies that this fee grants the franchisee the right to operate their Spray Net business within that single designated territory.
Spray Net allows franchisees to purchase additional population within their territory at a rate of $0.66 per additional household, potentially increasing the territory's scope and market. However, the initial franchise fee itself remains $54,500 for the first territory. This fee is considered fully earned and non-refundable once paid, with limited exceptions.
There is a conditional refund if the franchisee does not complete Spray Net's initial training program to the franchisor's satisfaction. In this specific case, Spray Net may terminate the agreement and return the initial franchise fee, along with 50% of the training fee, provided the franchisee signs 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, highlighting the importance of completing the training to protect the investment.
Prospective franchisees should carefully consider these conditions and ensure they are prepared to commit to the training program to avoid potential loss of the initial franchise fee. This fee structure is fairly typical in the franchise industry, where initial fees are often non-refundable to compensate the franchisor for initial setup and training efforts.