Under what condition is a Spray Net franchisee required to pay a relocation fee?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
|
| Name of Fee | Amount1 | Due Date | Remarks |
|---|---|---|---|
| Relocation Fee | Actual cost incurred by us. | As incurred. | If you receive our prior written |
| consent to relocate the Franchised | |||
| Business, you must also reimburse | |||
| us for the reasonable costs and | |||
| expenses | |||
| that | |||
| we | |||
| incur | |||
| in | |||
| connection with evaluating and | |||
| approving | |||
| the | |||
| proposed | |||
| relocation. |
Source: Item 6 — > **ITEM 6 OTHER FEES (FDD pages 15–29)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a franchisee is required to pay a relocation fee if they relocate their franchised business and receive prior written consent from Spray Net to do so. The relocation fee is the actual cost incurred by Spray Net in connection with evaluating and approving the proposed relocation. This fee is due as incurred.
This means that if a Spray Net franchisee wants to move their business location, they must first get approval from Spray Net. If Spray Net approves the relocation, the franchisee will have to reimburse Spray Net for the costs they incur during the evaluation and approval process. These costs could include things like travel expenses, consulting fees, and legal fees.
It is important for prospective Spray Net franchisees to understand that relocating their business can be a costly endeavor. In addition to the relocation fee payable to Spray Net, franchisees will also be responsible for the costs of moving their equipment and inventory, as well as any leasehold improvements that may be required at the new location. Franchisees should carefully consider these costs before deciding to relocate their business.
This type of relocation fee is not uncommon in the franchise industry, as franchisors want to ensure that any relocation is in the best interest of the brand and will not negatively impact other franchisees in the area. By requiring franchisees to obtain approval and cover the associated costs, franchisors can maintain control over the location of their franchise units.