Can Spray Net require a franchisee to utilize the Sales Center and pay the associated fees?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Beginning when Franchisee opens for business, Franchisee shall pay Franchisor the then-current fee for Franchisor's Business Management Software on the first of each month plus 0.25% of Franchise's monthly Gross Sales generated by the Franchised Business.
The Business Management Software fee is currently $350 per month plus 0.25% of Franchise's monthly Gross Sales generated by the Franchised Business.
Beginning upon the execution of this Agreement, Franchisee shall pay Franchisor its then-current monthly technology fee (the "Technology Fee"), on the same payment terms as the Royalty Fee, as consideration for any technology Franchisor (a) determines to associate, improve, or otherwise develop with the System and cover all or some portion of with this fee, and/or (b) collect on behalf of Franchisor's Approved Supplier and subsequently pay them under any type of agreement or relationship.
Currently, the Technology Fee is approximately one hundred dollars ($100.00) per month.
Franchisee will also be responsible for the other costs associated with establishing and operating the Franchised Business in accordance with System standards and specifications that Franchisee may be required to pay to Franchisor's approved or designated supplier (which may include Franchisor or its affiliates): (d) ongoing software licensing fees for software that Franchisor designates for use in connection with the Franchised Business, including the System-based business management software (collectively, the "Required Software");
Franchisor will provide Franchisee with at least one (1) email address, which: (i) Franchisee is required to use in connection with the Franchised Business; and (ii) must be the only email addresses used in connection with the Franchised Business.
Franchisee may be required to purchase these items from Franchisor or any other Approved Supplier that Franchisor designates.
SPRAY-NET retains the right to adjust the frequency and amount of the Spray-Network software fees and tech royalty invoiced.
In the event of major upgrades or integration of third-party applications, additional software fees may apply.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
Based on the 2025 Spray Net Franchise Disclosure Document, franchisees are required to pay certain technology and software fees. Specifically, franchisees must pay a monthly fee for Spray Net's Business Management Software, which is currently $350 per month, plus 0.25% of the franchise's monthly Gross Sales. Additionally, franchisees must pay a Technology Fee, which is currently approximately $100 per month.
Spray Net also retains the right to adjust the frequency and amount of the Spray-Network software fees and tech royalty invoiced. In the event of major upgrades or integration of third-party applications, additional software fees may apply. Franchisees are also responsible for ongoing software licensing fees for software that Spray Net designates for use in connection with the franchised business, including the System-based business management software.
Furthermore, Spray Net requires franchisees to use a designated email address provided by the company for all business-related communications. Franchisees may also be required to purchase private label products or other merchandise bearing the Proprietary Marks from Spray Net or any other Approved Supplier that Spray Net designates. These requirements ensure that franchisees utilize Spray Net's technology and resources and contribute to the costs associated with maintaining and improving the system.
While the FDD excerpts detail various technology and software fees, it does not explicitly state whether Spray Net can require a franchisee to utilize a "Sales Center" or the fees associated with it. A prospective franchisee should seek clarification from Spray Net regarding the existence of a Sales Center, whether its use is mandatory, and the specific fees involved.