In the Spray Net Referral Program, what determines the amount of the Referral Payment and Referral Discount?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
AA. Referral Program Participation. Franchisor may establish a referral program that governs the referrals of customers between System franchisees, including Franchisee (the "Referral Program"). Franchisee must participate in Franchisor's Referral Program and perform all then-current obligations set forth in the Referral Program, which Franchisor may, in its sole discretion, change from time to time.
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- Current Referral Program Terms. As of the Effective Date of this Agreement, Franchisor has established the Referral Program and Franchisee must participate and perform the following, which may be subject to change in Franchisor's sole discretion:
- a. Referral Payment and Discount. When a customer is referred to Franchisee through the Referral Program and such customer engages and pays Franchise for goods and services, Franchisee shall pay a referral fee in the form of a prepaid Visa Gift Card to the person who referred such customer (the "Referral Payment") and apply a discount on goods and services purchased from Franchisee by the referred customer ("Referral Discount"). Franchisor may designate the form of payment, vendor, and process for ordering and sending the Referral Payment, and Franchisor may, in its sole discretion, issue the Referral Payment and collect reimbursement from Franchisee. The Referral Payment amount shall be based on the amount the referred customer actually pays to Franchisee and the Referral Discount shall be based on the amount the referred customer agrees to pay Franchisee (both the "Job Amount") according to the table below:
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the amount of the Referral Payment and Referral Discount in the Referral Program is based on the Job Amount, which is the amount the referred customer actually pays to the franchisee and the amount the referred customer agrees to pay the franchisee. When a customer is referred to a Spray Net franchisee through the Referral Program and subsequently engages the franchisee's services and pays for them, the franchisee is obligated to provide a referral fee in the form of a prepaid Visa Gift Card to the referrer and apply a discount to the goods and services purchased by the referred customer.
The franchisor has the authority to designate the payment method, vendor, and process for ordering and sending the Referral Payment. Spray Net may also issue the Referral Payment directly and then collect reimbursement from the franchisee. The specific amounts for both the Referral Payment and Referral Discount are determined by a table provided by Spray Net, which correlates the Job Amount to the corresponding payment and discount values.
As a prospective Spray Net franchisee, it's important to understand that participation in the Referral Program is mandatory and subject to change at Spray Net's discretion. The franchisee is responsible for paying the referral fee and applying the discount, which directly impacts the revenue received from referred customers. The franchisor's ability to modify the terms of the Referral Program means that franchisees need to stay informed about any changes to the payment amounts, discount rates, or program procedures to accurately manage their finances and customer relations.