When is the signed Gross Sales report due to Spray Net from the franchisee each week?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
D. Operational Reports; Right to Modify Payment Interval.
Franchisee shall provide Franchisor with the following reports and information, all of which must be certified as true and correct by Franchisee and in the form and manner prescribed by Franchisor: (i) a signed Gross Sales report no later than noon on Monday of each week for Gross Sales generated during the immediately preceding week detailing the information from the preceding week, including (a) Gross Sales of the Franchised Business, (b) Franchisee's calculated Royalty Fee, (c) Fund contributions (if applicable), (d) Cooperative contributions (if applicable), and such evidence that Franchisee has made its local advertising expenditures required by Franchisor under this Agreement, the Manual, policy, or otherwise in writing; (ii) on or before the twentieth (20th) of each month, an unaudited profit and loss statement for the Franchised Business for the preceding calendar month; (iii) within sixty (60) days of each calendar quarter, an unaudited balance sheet reflecting the financial position of the Franchised Business as of the end of that calendar quarter; (iv) within sixty (60) days of Franchisor's request, a financial statement that details the total assets and liabilities of the Franchised Business (and, if appropriate Franchisee and personal guarantors under this Agreement); (v) within sixty (60) days after the close of each fiscal year of Franchisee, financial statements which must include a statement of income and retained earnings, a statement of changes in financial position, and a balance sheet of the Franchised Business, all as of the end of such fiscal year; and (vi) any other financial information or performance metrics of the Franchised Business that Franchisor may reasonably request.
The parties agree and acknowledge that Franchisor may modify the interval at which it collects Franchisee's Royalty Fee, Fund Contribution and other recurring fees under this Agreement upon written notice (i.e., Franchisor may provide Franchisee with notice that it will be collecting these fees on a monthly rather than weekly basis).
In such event, Franchisee's reporting obligations may also be modified by Franchisor accordingly.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees must submit a signed Gross Sales report to the company no later than noon on Monday of each week. This report should detail the Gross Sales generated during the immediately preceding week.
The report must include specific information such as the Gross Sales of the Franchised Business, the franchisee's calculated Royalty Fee, Fund contributions (if applicable), and Cooperative contributions (if applicable). Additionally, the franchisee must provide evidence that they have made the local advertising expenditures required by Spray Net, as outlined in the Franchise Agreement, the Operations Manual, or other written policies.
Spray Net also retains the right to modify the interval at which it collects Royalty Fees, Fund Contributions, and other recurring fees from the franchisee. This means Spray Net could switch from weekly to monthly collections with written notice. If the payment interval changes, Spray Net may also adjust the franchisee's reporting obligations accordingly. This flexibility allows Spray Net to adapt its financial processes as needed, potentially impacting the frequency of reporting required from franchisees.