In Maryland, are all initial fees and payments owed by Spray Net franchisees deferred?

According to Spray Net's 2025 Franchise Disclosure Document, specifically the Maryland Addendum, the Maryland Securities Commissioner has mandated a financial assurance due to the franchisor's financial condition. As a result, all initial fees and payments owed by Spray Net franchisees in Maryland are deferred. This deferral remains in effect until Spray Net completes its pre-opening obligations as outlined in the franchise agreement. This condition also applies to development fees and initial payments for area developers, which are deferred until the first franchise under the multi-unit development agreement commences operations.

This deferral of fees is a significant benefit for prospective Spray Net franchisees in Maryland. It reduces the upfront financial burden, allowing franchisees to conserve capital until Spray Net has fulfilled its initial obligations. This arrangement provides a level of financial security, ensuring that franchisees are not paying fees before receiving the support and services promised by Spray Net.

It is important for potential Spray Net franchisees in Maryland to understand the specific pre-opening obligations that trigger the payment of these deferred fees. These obligations should be clearly defined in the franchise agreement. Franchisees should also monitor Spray Net's progress in fulfilling these obligations to anticipate when the fees will become due. This deferral is specific to Maryland and is a result of the state's regulatory requirements related to the franchisor's financial condition.