What might the addendum to the Spray Net Franchise Agreement contain regarding the relationship between the franchisee and Spray Net related parties?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
- o Your Franchised Business generating Gross Sales necessary to meet and exceed your thencurrent Minimum Gross Sales under the Franchise Agreement by 15% for a period of at least three (3) consecutive months; and
- o You entering into a form of addendum to the Franchise Agreement memorializing your satisfaction of the above conditions, the specific Ancillary Service(s) you will be authorized to offer moving forward until such time that we advise you that (a) you are in material default of your Franchise Agreement and must therefore cease provision of the Ancillary Services until such default is cured, or (b) we are no longer authorizing the provision of the Authorized Services by your Franchised Business and the bases for this decision (with at least 30 days' prior notice, if and as possible), which may also contain a general release by you of us and our related parties.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 55–57)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the addendum to the Franchise Agreement, which is required for franchisees seeking to offer Ancillary Services, may contain a general release by the franchisee of Spray Net and its related parties. This addendum is executed after the franchisee has met specific conditions, including exceeding their minimum gross sales by 15% for at least three consecutive months.
This requirement to release Spray Net and its related parties has significant implications for prospective franchisees. By signing such a release, the franchisee may waive their rights to pursue legal claims against Spray Net and its affiliates, which could include claims related to the franchise agreement, business operations, or other aspects of the franchise relationship. Franchisees should carefully consider the scope and implications of such a release before signing it.
It is common for franchise agreements to include releases, but the specific terms and conditions can vary widely. Franchisees should seek legal counsel to fully understand the rights they are waiving and the potential risks involved. The addendum is triggered when a franchisee wants to offer additional services beyond the initial approved services, suggesting that Spray Net wants to ensure a comprehensive release as franchisees expand their business operations and potentially increase their exposure to liability.