Does Spray Net uniformly impose the initial fees described in Item 5 on all franchisees?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided in this Item, we expect and intend to impose the fees above uniformly on our System franchisees.
Veteran Discount
We currently offer a 10% discount to qualifying military veterans. The military discount is available to veterans who have received a discharge (other than dishonorable) as well as any active-duty personnel. If the franchisee is a corporation, limited liability company, or other legal entity, the veteran participant must maintain at least 51% ownership interest in the entity to qualify for this discount. To apply for the discount, you must provide us a copy of form DD-214, reflecting your military status, before the Franchise Agreement is signed.
Source: Item 5 — INITIAL FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the company generally imposes initial fees uniformly on its franchisees. However, there are exceptions to this general rule. Spray Net offers a 10% discount on the initial franchise fee to qualifying military veterans who have received a discharge (other than dishonorable) or are active-duty personnel. To qualify, the veteran must maintain at least a 51% ownership interest in the franchise entity and provide a copy of form DD-214 before signing the Franchise Agreement.
Spray Net outlines several initial fees in Item 5 of the FDD. These include the initial franchise fee of $54,500 for one designated territory with 75,000 households. Additional territories can be purchased at a reduced rate. Franchisees also pay an Initial Training Fee of $15,000, which is non-refundable once the Franchise Agreement is signed. Further, franchisees must purchase a Marketing Kit costing approximately $5,000 to $8,000, a Production Supplies Kit costing approximately $10,700 to $11,500, and a Sales Kit costing approximately $7,500 to $8,500.
Other initial fees include approximately $3,000 to $4,000 for a spray-booth and approximately $6,000 to $8,000 for a home show booth. Franchisees also pay between $1,000 to $5,000 per Designated Territory for the Initial Marketing Investment and $1,000 to $2,000 for computer hardware. Additionally, franchisees pay ongoing fees such as $40 per month for the "Spray-Pal" software, $350 per month plus 0.25% of Gross Sales for business management software, and $290 per month for use of Spray Net's Call Center.
Prospective franchisees should note that while Spray Net aims for uniformity in its fee structure, the veteran discount provides a notable exception. Franchisees should carefully review Item 5 of the FDD and discuss any potential fee variations or discounts with Spray Net to fully understand their initial investment obligations. Understanding these fees and potential discounts is crucial for accurate financial planning and assessing the overall feasibility of the franchise opportunity.