What is Spray Net's recommendation regarding the currency exchange rate when reviewing the Canadian financial data?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
material differences between the size, geography, and demographics aspects of your Designated Territory(ies) as compared to those of the CN Businesses.
Whenever "Gross Sales" and "Gross Bookings" are disclosed for CN Businesses, they are disclosed in Canadian Dollars because (i) that is how the sales were reported to us by our affiliate or our affiliate's franchisees; and (ii) the currency exchange rate between United States currency (the U.S. Dollar or "USD") and Canadian currency (the Canadian Dollar or "CAD") is constantly in flux such that the rate as of the Issuance Date of this Disclosure Document may not be the same rate at the time you are disclosed with this Disclosure Document and/or purchase franchise rights from us. For this reason, we encourage you to review these figures in light of the current exchange rate when you are disclosed with this Disclosure Document and when you purchase franchise rights from us. While there is a difference in the exchange rate, as reflected below in this Item 19, our U.S. franchisees charge and are typically paid more on a per-job basis than the CN Businesses. The exchange rate as of the date of this Issuance Date of this Disclosure Document (April 15, 2024) is $1 USD = $1.4011 CAD per www.bankofcanada.ca.
United States Spray-Net Businesses
We had twenty-nine (29) franchisees open and operating in the United States as of December 31, 2024 (the "US Businesses").
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 63–72)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, when reviewing the financial data of Canadian (CN) businesses, it is important to consider the currency exchange rate between the U.S. Dollar (USD) and the Canadian Dollar (CAD). Spray Net discloses "Gross Sales" and "Gross Bookings" for CN Businesses in Canadian Dollars because that is how the sales were reported to them. The franchisor encourages prospective franchisees to review these figures in light of the current exchange rate both when they are initially disclosed the FDD and when they purchase franchise rights. This is due to the constant fluctuation of the exchange rate. As of April 15, 2024, the exchange rate was $1 USD = $1.4011 CAD, per www.bankofcanada.ca.
This recommendation is significant because the financial performance of the Canadian Spray Net businesses is presented in Canadian dollars, while U.S. franchisees will operate using U.S. dollars. Understanding the current exchange rate is crucial for accurately assessing the potential revenue and profitability of a Spray Net franchise in the United States relative to the performance of existing Canadian franchises.
Spray Net also suggests consulting with a financial advisor or accountant regarding USD to CAD currency conversions, financial projections, and applicable taxes. This highlights the importance of seeking professional guidance to navigate the complexities of currency exchange and financial planning when considering a Spray Net franchise.