Under what circumstances can Spray Net request payment by bank or certified check?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
such section or subsection will not be affected thereby and will remain in full force and effect in accordance with its terms.
IN WITNESS WHEREOF, the Parties have caused this Assignment to be executed as of the day and year first above written.
| State | Effective Date | |---|---| | California | | | Hawaii | | | Illinois | | | Indiana | | | Maryland | | | Michigan | | | Minnesota | | | New York | | | North Dakota | | | Rhode Island | | | South Dakota | | | Virginia | | | Washington | | | Wisconsin | |
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.
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 outlines the EFT Authorization Form. This form details that the franchisee authorizes Spray Net to withdraw funds from their bank account electronically or otherwise. These withdrawals cover royalty fees, marketing contributions, technology-related amounts, and other fees due under the Franchise Agreement. The withdrawals occur weekly or on a schedule specified by Spray Net in writing. The authorization remains effective until terminated in writing by Spray Net. The franchisee must also provide a voided check to set up the bank and transit numbers.
This indicates that Spray Net primarily uses electronic fund transfers (EFT) for payments. The document does not explicitly state the circumstances under which Spray Net would request payment via bank or certified check instead of EFT. However, the authorization form allows Spray Net to withdraw funds electronically "or otherwise," suggesting flexibility in payment methods.
A prospective franchisee should clarify with Spray Net the specific situations where alternative payment methods like bank or certified checks would be required or accepted. Understanding these circumstances is crucial for managing cash flow and ensuring compliance with the franchise agreement.