Spray_Net 2025 Franchise FAQ - FDD Ninja

Question 1

Across all listed states, what was the highest number of Spray Net outlets opened in a single state during 2022?

Accepted Answer

| State | Year | Outlets at |  |  |  | Reacquired | Operations | Outlets |
|---|---|---|---|---|---|---|---|---|
|  |  | Start of | Outlets |  | Non- | by | -Other | at End of |
|  |  | the Year | Opened | Terminations | Renewals | Franchisor | Reasons | the Year |
| Alabama | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Arizona | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
| Colorado | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
| Florida | 2022 | 1 | 3 | 0 | 0 | 0 | 0 | 4 |
| Georgia | 2022 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
| Illinois | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Indiana | 2022 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
| Kansas | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
| Kentucky | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Michigan | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| New Jersey | 2022 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
| North Carolina | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Ohio | 2022 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
| Oregon | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| South Carolina | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
| Tennessee | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
| Texas | 2022 | 3 | 7 | 0 | 0 | 0 | 0 | 10 |
| Utah | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Virginia | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Wisconsin | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–75)

Question 2

As of December 31, 2024, how many Canadian Spray Net Businesses were included in the historical financial information?

Accepted Answer

Below, we disclose certain historical performance information regarding the thirteen (13) CN Businesses that were open and operating for a period of one (1) year as of December 31, 2024. We have excluded seven (7) CN Businesses that did not operate for a full year as of December 31, 2024. We have also excluded five (5) CN Businesses that did not report their complete financials to us. The sizes of Designated Territories that we expect and intend to award under this Disclosure Document are disclosed more fully in Item 12, and we expect there to be material differences between the size, geography, and demographics aspects of your Designated Territory(ies) as compared to those of the CN Businesses.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 63–72)

Question 3

What are the exceptions to the mediation requirement in the Spray Net franchise agreement?

Accepted Answer

# **SPRAY-NET INC. ILLINOIS ADDENDUM TO THE FRANCHISE AGREEMENT**

The following are revisions to the Franchise Agreement:

- 1. **Definitions**. Capitalized terms used but not defined in this Rider have the meanings given in the Agreement. The "Illinois Act" means the Illinois Franchise Disclosure Act of 1987.
- 2. **Governing Law and Jurisdiction**. Notwithstanding any provision of this Agreement to the contrary, this Agreement is governed by Illinois law. The parties irrevocably submit to the jurisdiction and venue of the federal and state courts in Illinois, except for matters which the Agreement provides will be resolved by arbitration.
- 3. **Limitation of Claims**. No action can be maintained to enforce any liability created by the Illinois Act unless brought before the expiration of 3 years from the act or transaction constituting the violation upon which it is based, the expiration of 1 year after Franchisee become aware of facts or circumstances reasonably indicating that Franchisee may have a claim for relief in respect to conduct governed by the Illinois Act, or 90 days after delivery to the Franchisee of a written notice disclosing the violation, whichever shall first expire.
- 4. **Waivers Void**. Notwithstanding any provision of the Agreement to the contrary, any condition, stipulation, or provision purporting to bind Franchisee to waive compliance with any provision of the Illinois Act or any other law of the State of Illinois is void. This Section shall not prevent Franchisee from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under any of the provisions of this Act, nor shall it prevent the arbitration of any claim under the provisions of Title 9 of the United States Code. No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any docume

Source: Item 23 — RECEIPTS (FDD pages 75–219)

Question 4

How many Spray Net franchises were reacquired by the franchisor across all states in 2024?

Accepted Answer

0                               |
|                   | 2023             | 0                               |
|                   | 2024             | 1                               |
|                   | 2022             | 0                               |
| Totals            | 2023             | 0                               |
|                   | 2024             | 1                               |

**Table No. 3 Status of Franchised Outlets For Years 2022 through 2024**

![](_page_72_Picture_0.jpeg)

|  |  |  |  |  |  |  | Ceased |  |
|---|---|---|---|---|---|---|---|---|
|  |  | Outlets at |  |  |  | Reacquired | Operations | Outlets |
|  |  | Start of | Outlets |  | Non- | by | -Other | at End of |
| State | Year | the Year | Opened | Terminations | Renewals | Franchisor | Reasons | the Year |
| Alabama | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Arizona | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Colorado | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
| Florida | 2022 | 1 | 3 | 0 | 0 | 0 | 0 | 4 |
|  | 2023 | 4 | 1 | 1 | 0 | 0 | 0 | 4 |
|  | 2024 | 4 | 0 | 1 | 0 | 0 | 1 | 2 |
| Georgia | 2022 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Illinois | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Indiana | 2022 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 1 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Kansas | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Kentucky | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Michigan | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| New Jersey | 2022 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 1 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–75)

Question 5

How many Spray Net franchises were not renewed across all states in 2024?

Accepted Answer

0                               |
|                   | 2023             | 0                               |
|                   | 2024             | 1                               |
|                   | 2022             | 0                               |
| Totals            | 2023             | 0                               |
|                   | 2024             | 1                               |

**Table No. 3 Status of Franchised Outlets For Years 2022 through 2024**

![](_page_72_Picture_0.jpeg)

|  |  |  |  |  |  |  | Ceased |  |
|---|---|---|---|---|---|---|---|---|
|  |  | Outlets at |  |  |  | Reacquired | Operations | Outlets |
|  |  | Start of | Outlets |  | Non- | by | -Other | at End of |
| State | Year | the Year | Opened | Terminations | Renewals | Franchisor | Reasons | the Year |
| Alabama | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Arizona | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Colorado | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
| Florida | 2022 | 1 | 3 | 0 | 0 | 0 | 0 | 4 |
|  | 2023 | 4 | 1 | 1 | 0 | 0 | 0 | 4 |
|  | 2024 | 4 | 0 | 1 | 0 | 0 | 1 | 2 |
| Georgia | 2022 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Illinois | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Indiana | 2022 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 1 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Kansas | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Kentucky | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Michigan | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| New Jersey | 2022 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 1 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–75)

Question 6

What is the required procedure for resolving disputes related to the Spray Net franchise agreement before pursuing legal action?

Accepted Answer

Any notice complying with the provisions hereof will be deemed delivered at the earlier of: (i) three (2) days after mailing; or (ii) the actual date of delivery or receipt (as evidenced by the courier). Each party shall have the right to designate any other address for such notices by providing the other party(ies) with written notice thereof at the addresses above, and in such event, all notices to be mailed after receipt of such notice shall be sent to such other address.

#### **21. GOVERNING LAW AND DISPUTE RESOLUTION**

A. **Governing Law**. This Agreement shall be governed by and construed in accordance with

![](_page_135_Picture_0.jpeg)

- the laws of the State of Delaware, without reference to this state's conflict of laws principles.

- B. **Internal Dispute Resolution**.

Franchisee must first bring any claim or dispute between Franchisee and Franchisor to Franchisor's management, after providing notice as set forth in Section 21(G) of this Agreement, and make every effort to resolve the dispute internally.

Franchisee must exhaust this internal dispute resolution procedure before Franchisee may bring Franchisee's dispute before a third party.

This agreement to first attempt resolution of disputes internally shall survive termination or expiration of this Agreement.

- C. **Mediation**.

At Franchisor's option, all claims or disputes between Franchisee and Franchisor (or its affiliates) arising out of, or in any way relating to, this Agreement or any other agreement by and between Franchisee and Franchisor (or its affiliates), or any of the parties' respective rights and obligations arising from such agreement, which are not first resolved through the internal dispute resolution procedure sent forth in Section 21(B) above, will be submitted first to mediation to

Source: Item 23 — RECEIPTS (FDD pages 75–219)

Question 7

What specific franchisee actions could lead to Spray Net seeking injunctive relief?

Accepted Answer

attempt to mediate a controversy, dispute, or claim through mediation as set forth in this Section 21(C) if such controversy, dispute, or claim concerns an allegation that a party has violated (or threatens to violate, or poses an imminent risk of violating): (i) any federally protected intellectual property rights in the Proprietary Marks, the System, or in any Confidential Information or other confidential information; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under this Agreement.
- D. **Injunctive Relief**. Franchisee acknowledges and agrees that irreparable harm could be caused to Franchisor by Franchisee's violation of certain provisions of this Agreement and, as such, in addition to any other relief available at law or equity, Franchisor shall be entitled to obtain in any court of competent jurisdiction, without bond, restraining orders or temporary or permanent injunctions in order to enforce, among other items, the provisions of this Agreement relating to: (i) Franchisee's use of the Proprietary Marks and Confidential Information (including any proprietary software used in connection with the Franchised Business); (ii) the in-term covenant not to compete, as well as any other violations of the restrictive covenants set forth in this Agreement; (iii) Franchisee's obligations on termination or expiration of this Agreement; (iv) disputes and controversies based on or arising under the Lanham Act, or otherwise involving the Proprietary Marks,

![](_page_136_Picture_0.jpeg)

as now or hereafter amended;

Source: Item 23 — RECEIPTS (FDD pages 75–219)

Question 8

What is the total estimated low and high range for the initial investment to open a Spray Net franchise?

Accepted Answer

nclude any draw or salary for you.

# **B. Franchise Agreement (Multiple Designated Territories)**

| Type of Expenditure (1)                                         | Amount Low                                     | Amount High                                       | Method of Payment                                                                                                                                              | When Due                                    | To Whom Payment is to be Made |
|-----------------------------------------------------------------------|------------------------------------------------|---------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------|-------------------------------------|
| Initial Franchise Fee                                              | \$99,500 (for 2 Designated Territories)  | \$144,500 (for 3 Designated Territories) | Lump sum.                                                                                                                                                         | Upon signing of a Franchise Agreement | Us                                  |
| Initial Investment associated with Franchised Business(1) | \$136,515                                      | \$200,915                                         | Please see Table in Part A of this Item 7 for additional information on this investment. Does not include Initial Franchise Fee (included in row above). |                                             |                                     |
| T

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 29–33)

Question 9

What is the total initial investment required to offer roofing services under the Spray Net franchise?

Accepted Answer

e.

![](_page_23_Picture_0.jpeg)

| Name of Fee                             | Amount1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Due Date                                                                                        | Remarks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Roofing Equipment | \$20,000 to \$30,000 The fees below will only be charged if you fail to comply with the terms of your Franchise Agreement. | Upon choosing to offer Roofing Services within the Territory(ies) | If you choose to offer roofing services, you must purchase approximately \$20,000 to \$30,000 of applicable equipment from u

Source: Item 6 — > **ITEM 6 OTHER FEES (FDD pages 15–29)

Question 10

What was the total net change in Spray Net outlets across all states in 2022?

Accepted Answer

| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|-------------------------|------------------|-------------------------------------------------|-----------------------------------------------|------------------------|
| Franchised              | 2022             | 11                                              | 26                                            | +15                    |
|                         | 2023             | 26                                              | 27                                            | +1                     |
|                         | 2024             | 27                                              | 29                                            | +2                     |
| Company-Owned           | 2022             | 0                                               | 0                                             | 0                      |
|                         | 2023             | 0                                               | 0                                             | 0                      |
|                         | 2024             | 0                                               | 0                                             | 0                      |
| Total Outlets           | 2022             | 11                                              | 26                                            | +15                    |
|                         | 2023             | 26                                              | 27                                            | +1                     |
|                         | 2024             | 27                                              | 29                                            | +2                     |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–75)

Question 11

What is the total number of classroom training hours in the Spray Net training program?

Accepted Answer

| Module                           | Hours of Classroom Training | Hours On-the-Job Training | Location                                                                                   |
|----------------------------------|-----------------------------------|------------------------------|--------------------------------------------------------------------------------------------|
| Selling | 8 | 8 | Virtual training and Within your Designated Territory or at your Franchised Business |
| Recruiting | 2 | 0 | Virtual training |
| Interviewing | 2 | 0 | Virtual training |
| Hiring | 2 | 0 | Virtual training |
| Expectation Setting | 2 | 0 | Virtual training |
| Culture Building | 2 | 0 | Virtual training |
| Goal Setting and | 2 | 0 | Virtual training |
| Review |  |  |  |
| Marketing/Customer | 2 | 0 | Virtual training |
| Experience |  |  |  |
| Production | 8 | 36 | Virtual training and Within your Designated Territory or at your Franchised Business |
| Productivity | 2 | 10 | Virtual training and Within your Designated Territory or at your Franchised Business |
| Profitability | 4 | 5 | Virtual training |
| Procurement / Quality Control | 2 | 5 | Virtual training and Within your Designated Territory or at your Franchised Business |
| Total | 64 | 74 |  |

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–49)

Question 12

What was the total number of Spray Net franchises that ceased operations for other reasons in 2024?

Accepted Answer

0                               |
|                   | 2023             | 0                               |
|                   | 2024             | 1                               |
|                   | 2022             | 0                               |
| Totals            | 2023             | 0                               |
|                   | 2024             | 1                               |

**Table No. 3 Status of Franchised Outlets For Years 2022 through 2024**

![](_page_72_Picture_0.jpeg)

|  |  |  |  |  |  |  | Ceased |  |
|---|---|---|---|---|---|---|---|---|
|  |  | Outlets at |  |  |  | Reacquired | Operations | Outlets |
|  |  | Start of | Outlets |  | Non- | by | -Other | at End of |
| State | Year | the Year | Opened | Terminations | Renewals | Franchisor | Reasons | the Year |
| Alabama | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Arizona | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Colorado | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
| Florida | 2022 | 1 | 3 | 0 | 0 | 0 | 0 | 4 |
|  | 2023 | 4 | 1 | 1 | 0 | 0 | 0 | 4 |
|  | 2024 | 4 | 0 | 1 | 0 | 0 | 1 | 2 |
| Georgia | 2022 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Illinois | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Indiana | 2022 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 1 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Kansas | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Kentucky | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Michigan | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| New Jersey | 2022 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 1 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| North Carolina | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 1 | 1 | 0 | 0 | 0 | 2 |
| Ohio | 2022 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Oregon | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
| South Carolina | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
![](_page_73_Picture_0.jpeg)

| Tennessee | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|---|---|---|---|---|---|---|---|---|
|  | 2023 | 1 | 2 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
| Texas | 2022 | 3 | 7 | 0 | 0 | 0 | 0 | 10 |
|  | 2023 | 10 | 0 | 4 | 0 | 0 | 0 | 6 |
|  | 2024 | 6 | 1 | 0 | 0 | 0 | 2 | 5 |
| Utah | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 2 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| Virginia | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 2 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–75)

Question 13

What was the total number of Spray Net franchises that were opened in 2023?

Accepted Answer

|  |  | Outlets at | Outlets |  | Non- |
| State | Year | the Year | Opened | Terminations |
| Total | 2022 | 11 | 17 | 2 |
|  | 2023 | 26 | 11 | 10 |
|  | 2024 | 27 | 7 | 2 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–75)

Question 14

What was the total number of Spray Net franchises that were terminated in 2023?

Accepted Answer

| 0                               |
|                   | 2024             | 1                               |

**Table No. 3 Status of Franchised Outlets For Years 2022 through 2024**

![](_page_72_Picture_0.jpeg)

|  |  |  |  |  |  |  | Ceased |  |
|---|---|---|---|---|---|---|---|---|
|  |  | Outlets at |  |  |  | Reacquired | Operations | Outlets |
|  |  | Start of | Outlets |  | Non- | by | -Other | at End of |
| State | Year | the Year | Opened | Terminations | Renewals | Franchisor | Reasons | the Year |
| Alabama | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Arizona | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Colorado | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
| Florida | 2022 | 1 | 3 | 0 | 0 | 0 | 0 | 4 |
|  | 2023 | 4 | 1 | 1 | 0 | 0 | 0 | 4 |
|  | 2024 | 4 | 0 | 1 | 0 | 0 | 1 | 2 |
| Georgia | 2022 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Illinois | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Indiana | 2022 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 1 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Kansas | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Kentucky | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Michigan | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| New Jersey | 2022 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 1 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| North Carolina | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 1 | 1 | 0 | 0 | 0 | 2 |
| Ohio | 2022 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Oregon | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
| South Carolina | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
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| Tennessee | 2022 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|---|---|---|---|---|---|---|---|---|
|  | 2023 | 1 | 2 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
| Texas | 2022 | 3 | 7 | 0 | 0 | 0 | 0 | 10 |
|  | 2023 | 10 | 0 | 4 | 0 | 0 | 0 | 6 |
|  | 2024 | 6 | 1 | 0 | 0 | 0 | 2 | 5 |
| Utah | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 2 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| Virginia | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 2 | 0 | 0 | 0 | 0 | 2 |
| Wisconsin | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Total | 2022 | 11 | 17 | 2 | 0 | 0 | 0 | 26 |
|  | 2023 | 26 | 11 | 10 | 0 | 0 | 0 | 27 |
|  | 2024 | 27 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–75)

Question 15

What is the total number of on-the-job training hours included in the Spray Net initial training program?

Accepted Answer

| Module                           | Hours of Classroom Training | Hours On-the-Job Training | Location                                                                                   |
|----------------------------------|-----------------------------------|------------------------------|--------------------------------------------------------------------------------------------|
| Selling | 8 | 8 | Virtual training and Within your Designated Territory or at your Franchised Business |
| Recruiting | 2 | 0 | Virtual training |
| Interviewing | 2 | 0 | Virtual training |
| Hiring | 2 | 0 | Virtual training |
| Expectation Setting | 2 | 0 | Virtual training |
| Culture Building | 2 | 0 | Virtual training |
| Goal Setting and | 2 | 0 | Virtual training |
| Review |  |  |  |
| Marketing/Customer | 2 | 0 | Virtual training |
| Experience |  |  |  |
| Production | 8 | 36 | Virtual training and Within your Designated Territory or at your Franchised Business |
| Productivity | 2 | 10 | Virtual training and Within your Designated Territory or at your Franchised Business |
| Profitability | 4 | 5 | Virtual training |
| Procurement / Quality Control | 2 | 5 | Virtual training and Within your Designated Territory or at your Franchised Business |
| Total | 64 | 74 |  |

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–49)

Question 16

What is the total projected number of new franchised Spray Net outlets expected to open in the next fiscal year across all states listed in the table?

Accepted Answer

|  | Franchise Agreements | Projected New Franchised |
|---|---|---|
| State | Signed But Outlet Not | Outlets in |
|  | Opened | the Next Fiscal Year |
| Georgia | 1 | 1 |
| New Jersey | 1 | 1 |
| New York | 1 | 1 |
| Ohio | 2 | 2 |
| Totals | 5 | 5 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–75)

Question 17

What are the different fees a Spray Net franchisee must pay, combining the initial fee in Item 5 and the ongoing fees in Item 6?

Accepted Answer

#### *Initial Training Fee*

You must pay us a fee in connection with the initial training that we provide to you or, if Franchisee is an entity, your operating principal prior to and around the time you initially launch your Franchised Business amounting to \$15,000 (the "Initial Training Fee"), which shall be deemed fully earned and non-refundable upon signing of the Franchise Agreement.

#### *Marketing Kit*

You must pay us approximately \$5,000 to \$8,000 for the initial package of business supplies such as uniforms, marketing brochures, letterhead and business cards (the "Marketing Kit"), which will be due and deemed fully earned upon and execution of your Franchise Agreement.

#### *Production Supplies Kit*

Prior to opening, you must purchase a "Production Supplies Kit" from us, which includes everything you need to complete your initial production training jobs. The cost of the Production Supplies Kit is approximately \$10,700 to \$11,500.

#### *Sales Kit*

Prior to opening, you must purchase a "Sales Kit" from us, consisting of sample boards, paint color charts, bags, polos, other clothing needs, and more. The cost of the Sales Kit is approximately \$7,500 to \$8,500.

#### *Spray-Pal*

When you commence operation of the Franchised Business, you will begin paying us \$40 per month for access to the "Spray-Pal" software, which uses an AI-powered chatbot to instantly answer common franchisee or franchisee employee questions, acting like a virtual assistant that helps automate support and improve response times – no human needed for routine inquiries. You will continue paying this to us throughout the term of the Franchise Agreement.

#### *Home-Show Booth and Spray-Booth*

You must pay us approximately \$3,000 to \$4,000 in connection with the purchase of a spray-booth (the "Spray-Booth") and approximately \$6,000 to \$8,000 in connection with the home show booth ("Home-Show Booth") that you will use in the operation of your Franchised Business. The Spray-Booth is included under the estimate for Equipment below in Item 7.

#### *Initial Marketing Investment*

Out of your total Initial Marketing Investment, you will pay us between \$1,000 to \$5,000 per Designated Territory that you purchase. While the Initial Marketing Investment will be paid to our approved or designated third-party suppliers for these kinds of services, we expect and intend to collect this amount directly from you and may keep a portion of the Initial Marketing Investment as consideration for managing the placement and suppliers associated with this initial marketing and related activities designed to (a) increase visibility of the Franchised Business within your Designated Territory, and/or (b)

Question 18

What are the different fees a Spray Net franchisee must pay, combining the initial fee in Item 5 and the ongoing fees in Item 6, considering marketing contributions?

Accepted Answer

[Item 5: INITIAL FEES]

#### *Home-Show Booth and Spray-Booth*

You must pay us approximately $3,000 to $4,000 in connection with the purchase of a spray-booth (the "Spray-Booth") and approximately $6,000 to $8,000 in connection with the home show booth ("Home-Show Booth") that you will use in the operation of your Franchised Business. The Spray-Booth is included under the estimate for Equipment below in Item 7.

#### *Initial Marketing Investment*

Out of your total Initial Marketing Investment, you will pay us between $1,000 to $5,000 per Designated Territory that you purchase. While the Initial Marketing Investment will be paid to our approved or designated third-party suppliers for these kinds of services, we expect and intend to collect this amount directly from you and may keep a portion of the Initial Marketing Investment as consideration for managing the placement and suppliers associated with this initial marketing and related activities designed to (a) increase visibility of the Franchised Business within your Designated Territory, and/or (b) generate prospective client interest and sales appointments prior to and up through the opening and initial operations of your Franchised Business. Because we impose and collect this amount from you prior to opening, your

![](_page_14_Picture_0.jpeg)

Initial Marketing Investment is disclosed in this Item. This portion and remainder of the Initial Marketing Investment is due upon execution of your Franchise Agreement unless we agree otherwise in writing.

#### *Computer Hardware*

You must pay us, an Approved Supplier or third party between $1,000 to $2,000 in connection with the purchase of computer hardware that you will use in the operation of your Franchised Business.

*Business Management Software*

When you commence operation of your Franchised Business, you will pay us $350 per month plus 0.25% of Gross Sales for business management and project/sales tracking software that we have developed and branded for use in connection with the System. You will pay us $1,050 over the first three months of operation of your Franchised Business, assuming you have no Gross Sales during that time.

*Call Center Fees*

---

[Item 5: INITIAL FEES]

![](_page_13_Picture_0.jpeg)

During the fiscal year ended December 31, 2024, the Initial Franchise Fee was uniformly imposed. If you do not complete our initial training program to our satisfaction, we may terminate the franchise agreement and return the Initial Franchise Fee and 50% of the Training Fee to you in exchange for a release and confidentiality agreement.

#### *Initial Training Fee*

You must pay us a fee in connection with the initial training that we provide to you or, if Franchisee is an entity, your operating principal prior to and around the time you initially launch your Franchised Business amounting to $15,000 (the "Initial Training Fee"), which shall be deemed fully earned and non-refundable upon signing of the Franchise Agreement.

#### *Marketing Kit*

You must pay us approximately $5,000 to $8,000 for the initial package of business supplies such as uniforms, marketing brochures, letterhead and business cards (the "Marketing Kit"), which will be due and deemed fully earned upon and execution of your Franchise Agreement.

#### *Production Supplies Kit*

Prior to opening, you must purchase a "Production Supplies Kit" from us, which includes everything you need to complete your initial production training jobs. The cost of the Production Supplies Kit is approximately $10,700 to $11,500.

#### *Sales Kit*

Prior to opening, you must purchase a "Sales Kit" from us, consisting of sample boards, paint color charts, bags, polos, other clothing needs, and more. The cost of the Sales Kit is approximately $7,500 to $8,500.

#### *Spray-Pal*

When you commence operation of the Franchised Business, you will begin paying us $40 per month for access to the "Spray-Pal" software, which uses an AI-powered chatbot to instantly answer common franchisee or franchisee employee questions, acting like a virtual assistant that helps automate support and improve response times – no human needed for routine inquiries. You will continue paying this to us throughout the term of the Franchise Agreement.

#### *Home-Show Booth and Spray-Booth*

---
[Item 6: > **ITEM 6 OTHER FEES]

3. **Marketing Expenses (Local Advertising Requirement, Digital Marketing Spend, Production Fee, and Brand Fund Contribution)**. You must spend a minimum annual amount on local advertising for your Franchised Business ("Local Advertising Requirement"). You are required to spend 75% of your Local Advertising Requirement on digital marketing ("Digital Marketing Spend" or "DMS") on a monthly basis. We are currently the only Approved Supplier for digital marketing, and we may either perform the digital marketing services or contract with another supplier to provide them. Whether we provide the digital marketing services or engage another supplier to provide them, you are required to pay us our then-current fee for managing such digital marketing services (the

![](_page_26_Picture_0.jpeg)

"Production Fee"), which covers the administrative cost of placing the digital advertising and is subject to a cap or maximum amount. You must also pay us a Brand Fund Contribution each month.

Question 19

What are the different fees a Spray Net franchisee must pay, combining the initial fee in Item 5 and the ongoing fees in Item 6, considering training fees?

Accepted Answer

Upon execution of this Agreement, Franchisee must pay Franchisor an initial franchise fee amounting to Fifty-Four Thousand Five-Hundred Dollars ($54,500) (the "Initial Franchise Fee") for a single Designated Territory. If you are granted the right to operate your Franchised Business in more than one Designated Territory, each additional Designated Territory will have its own Initial Franchise Fee according to the table below, and you will pay Franchisor the Cumulative Franchise Fee based on the table below upon execution of this Agreement. Upon approval by Franchisor, Franchisee may also purchase additional population for $0.66 per additional household. The fees you pay under this Section 4(A)(1) shall be deemed fully earned and non-refundable under any circumstances, except as specifically stated herein, upon payment. If Franchisee does not complete Franchisor's initial training program to Franchisor's satisfaction, Franchisor may terminate this Agreement and return the Initial Franchise Fee and fifty percent (50%) of the Training Fee to Franchisee in exchange for a release and confidentiality agreement. If Franchisee withdraws from Franchisor's initial training program or otherwise does not complete the initial training program, the Initial Franchise Fee is non-refundable.