Is the initial training fee refundable for a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Initial Training Fee. Franchisee must pay Franchisor an initial training fee of Fifteen Thousand Dollars ($15,000) (the "Initial Training Fee") prior to or around the time Franchisee initially launches its Franchised Business. The Initial Training Fee is deemed fully earned and non-refundable upon signing this Agreement.
- 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 not complete the initial training program, the Initial Franchise Fee is non-refundable. Franchisee's Initial Franchise Fee, as calculated by this table and accounting for additional households, is stated in the Data Sheet attached hereto as Exhibit A.
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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 training fee is generally non-refundable. The franchisee must pay Spray Net an initial training fee of $15,000 prior to or around the time they launch their franchised business. This fee is deemed fully earned and non-refundable once the Franchise Agreement is signed.
However, there is an exception regarding the initial franchise fee (separate from the training fee). If a 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 and 50% of the training fee to the franchisee, provided that a release and confidentiality agreement is signed. If the franchisee withdraws from the training program or does not complete it, the initial franchise fee remains non-refundable.
Prospective franchisees should carefully consider these conditions. While the $15,000 initial training fee is typically non-refundable upon signing the agreement, there is a possibility of receiving 50% of it back (along with the initial franchise fee) if Spray Net terminates the agreement due to the franchisee not meeting the franchisor's standards during training, and a release and confidentiality agreement is signed. It is important to understand the specific criteria Spray Net uses to determine satisfactory completion of the training program.