For Spray Net, on which pages of the financial statements can I find the Notes to Financial Statements?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
---------------------------|----------------------------------------|----|----------------------------------| | Equity at January 1, 2022 Prior Period Adjustment Net (loss) | $ 38 | | | $ (167,748) 41,113 (690,286) | $ | (167,710) 41,113 (690,286) | | Equity at December 31, 2022 | $ 38 | $ | - 20 | $ (816,921) | $ | (816,883) | | Equity at January 1, 2023 | $ 38 | | | $ (816,921) | $ | (816,883) | | Net (loss) | | | | 839,705 | | 839,705 | | Equity at December 31, 2023 | $ 38 | $ | | $ 22,784 | $ | 22,822 | | Equity at January 1, 2023 | $ 38 | | | $ 22,784 | $ | 22,822 | | Net (loss) | | | | (800,545) | | (800,545) | | Equity at December 31, 2024 | $ 38 | $ | - 8.= | $ (777,761) | $ | (777,723) |
SPRAY-NET INC. NOTES TO THE FINANCIAL STATEMENTS
1. THE COMPANY
Spray-Net Inc. ("the Company") is Delaware corporation that was incorporated in September 2016 to offer franchises for the right to own and operate a spray painting, staining and other coating service business, designed for the exterior of homes and other residential buildings.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting-The accompanying financial statements have been prepared on an accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America. Under the accrual method, revenues are recognized when earned and expenses are recognized when a liability is incurred, without regard to disbursement of cash.
Franchise Arrangements-The company's franchise agreements generally include a license which provides for payments of initial fees as well as continuing royalties to the company based upon a percentage of sales. Under this arrangement, franchisees are granted the right to operate a Spray-Net franchise for a specified number of years.
Concentration of Credit Risk-Financial instruments that potentially expose the Company to concentration of credit risk primarily consist of cash and cash equivalents. T
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the Notes to the Financial Statements can be found starting on a page that includes the heading "SPRAY-NET INC. NOTES TO THE FINANCIAL STATEMENTS." This section provides additional details and explanations regarding the figures and information presented in Spray Net's financial statements.
These notes are crucial for a prospective franchisee as they offer insights into Spray Net's accounting practices, revenue recognition methods, related party transactions, and other significant financial details. For instance, the notes clarify how Spray Net handles franchise fees, manages its brand fund, and deals with potential credit risks. Understanding these aspects can help a franchisee assess the financial health and stability of Spray Net.
The notes also cover specific accounting policies, such as the basis of accounting (accrual basis) and the use of estimates in preparing the financial statements. Additionally, they address topics like revenue recognition in compliance with accounting standards and any prior year adjustments that may have been made. Reviewing these notes allows a potential franchisee to gain a deeper understanding of how Spray Net's financial results are reported and interpreted.
Specifically, Note 1 describes the company's incorporation and business activities, while Note 2 summarizes significant accounting policies. Note 3 discusses revenue recognition, and subsequent notes address brand fund management, prior year adjustments, related party transactions, income taxes, and subsequent events. These detailed explanations are essential for a comprehensive understanding of Spray Net's financial position.