Can Spray Net modify the interval at which it collects Royalty Fees from franchisees?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Spray Net retains the right to adjust the frequency and amount of the Spray-Network software fees and tech royalty invoiced. This means that Spray Net has the discretion to change how often it bills franchisees for these fees, as well as the amounts due.
For a prospective franchisee, this indicates a degree of financial uncertainty. While the franchise agreement will initially specify the payment terms, Spray Net can alter these terms during the franchise term. This could impact a franchisee's budgeting and cash flow management.
The tech royalty is calculated weekly at a rate of 0.0025 of the total job value produced the previous week. The FDD does not specify how much advance notice Spray Net must provide before changing the frequency or amount of these fees. It is important for a prospective franchisee to understand the potential for these changes and how they might affect their business.
Franchisees should inquire about the factors that would trigger such adjustments, the typical range of adjustments, and how much advance notice Spray Net typically provides. Understanding these aspects can help a franchisee better prepare for potential financial changes during the term of their franchise agreement.