Is the interest rate for late payments to Spray Net subject to any limitations?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Fees and Payment Terms: Software fees for the use of the Spray-Network are broken down into reoccurring monthly fixes fees, as outlined in the franchise agreement. In addition to the monthly fixed fee, there is a weekly Tech fee royalty amount due. This accounts for 0.0025 of total job value produced the previous week.
SPRAY-NET retains the right to adjust the frequency and amount of the Spray-Network software fees and tech royalty invoiced.
In the event of major upgrades or integration of third-party applications, additional software fees may apply.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
Based on the 2025 Spray Net Franchise Disclosure Document, there is no mention of limitations on interest rates for late payments. 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. It also states that software fees for the use of the Spray-Network are broken down into reoccurring monthly fixes fees, as outlined in the franchise agreement, and a weekly Tech fee royalty amount due, accounting for 0.0025 of total job value produced the previous week. SPRAY-NET retains the right to adjust the frequency and amount of the Spray-Network software fees and tech royalty invoiced. In the event of major upgrades or integration of third-party applications, additional software fees may apply.
While the FDD outlines the fees associated with the Spray-Network software and tech royalties, it does not specify whether late payments are subject to interest or if there are any limitations on such interest rates. The document does state that failure to pay invoices can result in restricted access to the Spray-Network.
Prospective franchisees should inquire with Spray Net about the specific terms and conditions regarding late payments, including any applicable interest rates or penalties. Understanding these terms is crucial for managing finances and avoiding potential disruptions to their franchise operations.