What is the interest rate charged on late payments to Spray Net?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
ES TO THE FINANCIAL STATEMENTS
5. BRAND FUND
The Company maintains a brand fund established to collect and administer funds contributed for use in advertising and promotional programs for franchise units. Advertising fees are collected from franchisees based on a percentage of franchisee gross revenues. Brand fund liability for the years ending December 31, 2024, 2023 and 2022 were $0 and $0 and $80,280 respectively.
6. PRIOR YEAR ADJUSTMENT
A restatement to the year ended December 31, 2022, financ
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
Based on the 2025 Spray Net Franchise Disclosure Document, the advances that Spray Net periodically receives from its members or related companies are due upon demand and do not bear interest. Similarly, advances of funds from Spray Net to its members or related companies are also due upon demand and do not bear interest. This applies to the balances as of December 31, 2024, 2023, and 2022.
However, the FDD does not explicitly state the interest rate Spray Net charges on late payments from franchisees. The document does mention that Spray Net retains the right to restrict access to the Spray-Network in the event of failure to pay invoices, breach of franchise agreement, or termination of a Franchise. This indicates that there are consequences for not paying invoices, but the specific interest rate is not disclosed.
A prospective Spray Net franchisee should inquire directly with the franchisor about the specific interest rate or late payment penalties applied to overdue invoices to fully understand the financial obligations and potential costs associated with late payments. This information is crucial for managing cash flow and avoiding unexpected expenses.