factual

How is the Minimum Gross Sales for a Spray Net franchise determined?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

oss Sales of the Franchised Business. Your Minimum Gross Sales, which are based on the number of Designated Territories you purchase and the length of time your Franchised Business has been in operation, are below. Your Royalty Fee is subject to a minimum equal to 7% of the applicable Minimum Gross Sales below.

Minimum Gross Sales
Period(s) 1 Designated Territory 2 Designated Territories 3 Designated Territories
First Year of Operation $300,000 $350,000 $375,000
Second Year of Operation

Source: Item 6 — > **ITEM 6 OTHER FEES (FDD pages 15–29)

What This Means (2025 FDD)

According to Spray Net's 2025 Franchise Disclosure Document, the minimum gross sales for a franchise are determined by two factors: the number of designated territories a franchisee purchases and the length of time the franchised business has been in operation. The more territories a franchisee has and the longer they have been operating, the higher their minimum gross sales will be.

Spray Net provides a table that outlines the specific minimum gross sales figures for franchisees. For example, a franchisee with one designated territory in their first year of operation has a minimum gross sales target of $300,000. This increases to $431,250 in their second year and continues to rise each year thereafter. A franchisee with three designated territories, however, has a minimum gross sales target of $375,000 in their first year, increasing to $575,000 in their second year, and so on.

It's important to note that these minimum gross sales figures also affect the royalty fees paid to Spray Net. The royalty fee is subject to a minimum equal to 7% of the applicable minimum gross sales. Therefore, if a franchisee's actual gross sales fall below the minimum, they will still be required to pay royalty fees based on the minimum gross sales amount. This incentivizes franchisees to meet or exceed their minimum sales targets to maximize their profitability and avoid paying royalties on sales they did not actually achieve.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.