Who is responsible for bank charges or electronic payment fees associated with payments to Spray Net?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT D TO THE FRANCHISE AGREEMENT
EFT AUTHORIZATION FORM
Bank Name: ABA# Acct. No.: Acct. Effective as of the date of the signature below, [Franchisee Name] its affiliates under the franchise agreement dated thefranchised business located at: Business"): (i)all Royalty Fees; (ii) Fund marketing materials or other supplies or inventory designee) as set forth in the Franchise Agreement. (the "Franchisee") hereby authorizes SPRAY-NET INC. (the "Company") or its designee to withdraw funds from the above-referenced bank account, electronically or otherwise, to cover the following payments that are due and owing Company or (the "Franchise Agreement") for (the "Franchised Contributions, Initial Marketing Investment, as well as other advertising/marketing amounts that Franchisee is required to expend in connection with the Franchised Business; (iii) any amounts due and owing the Company or its affiliates in connection with technology, that is provided by Company or its affiliates; and (iv) all other fees and amounts due and owing to Company or its affiliates under the Franchise Agreement. Franchisee acknowledges each of the fees described above may be collected by the Company (or its The parties further agree that all capitalized terms not specifically defined herein will be afforded the definition they are given in the Franchise Agreement. the above-referenced account. Such withdrawals shall occur on a weekly basis, or on such other schedule as Company shall specify in writing. This authorization shall remain in full force and effect until terminated in writing by Company. [Franchisee Name] shall provide Company, in conjunction with this authorization, a voided check from AGREED: [INSERT SPRAY-NET INC. NAME] Carmelo (Print): Marsala, President Its: Please attach a voided blank check, for purposes of setting up Bank and Transit Numbers.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
Based on the 2025 Spray Net Franchise Disclosure Document, Exhibit D to the Franchise Agreement includes an EFT Authorization Form. This form authorizes Spray Net to withdraw funds electronically from the franchisee's bank account to cover various fees. The document does not explicitly state who is responsible for covering bank charges or electronic payment fees associated with these transactions.
Given that the franchisee authorizes Spray Net to withdraw funds, it is common practice that any bank charges or electronic payment fees associated with these withdrawals could potentially be passed on to the franchisee. This would depend on the specific agreements and terms set by the banks involved and how Spray Net structures its payment processing.
A prospective Spray Net franchisee should clarify with Spray Net who bears the responsibility for any bank charges or electronic payment fees related to the electronic fund transfers. Understanding this detail is crucial for accurately forecasting expenses and managing the financial aspects of the franchise.
It would be prudent for a potential franchisee to discuss this with existing franchisees to understand their experiences with electronic payment fees and bank charges. This inquiry should be part of a broader due diligence process to fully understand all potential costs associated with operating a Spray Net franchise.