Can Spray Net or its affiliates be Approved Suppliers from which the franchisee must purchase or lease Required Items?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
le Updates within four (4) months of Franchisor's request.
- H. Compliance with Applicable Laws. Franchisee must at all times conduct and operate the Franchised Business in accordance with all federal, state, and local laws, ordinances, and regulations applicable thereto.
- I. Approved Vehicle; Other Required Items. Franchisee must: (i) purchase, lease, and/or maintain any and all Required Items that Franchisor designates for use in connection with the Franchised Business that may include, without limitation, the Mobile Services Unit, Approved Vehicle, Computer System, equipment, supplies, inventory; (ii) ensure that all Required Items meet Franchisor's standards and specifications; and (iii) purchase all items Franchisor specifies from the Approved Supplier(s) that Franchise designates, which may include Franchisor or its affiliate(s). Franchisee agrees and acknowledges that Franchisor and/or its affiliates may derive revenue from the offer and sale of Required Items.
Franchisee shall cause the Mobile Services Unit and Approved Vehicle to be wrapped or painted in signage and artwork as approved by Franchisor prior to opening the Franchised Business. Franchisee agrees to maintain any Approved Vehicle in good mechanical condition and an appearance that properly represents Franchisor's brand to the public and to improve vehicle appearance at the request of the Franchisor.
- J. Required Purchases of Inventory and Supplies. Franchisee must purchase all inventory and supplies required by Franchisor to sell and provide the Approved Products and Approved Services, as well as thereafter maintain such inventory/supply levels, as Franchisee deems reasonably necessary and appropriate, to meet current customer demand and any anticipated customer demand in the near future.
- K. Inspection of Items.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Spray Net or its affiliates can be designated as approved suppliers from which franchisees must purchase or lease required items. Specifically, franchisees must purchase, lease, and/or maintain any and all Required Items that Spray Net designates for use in connection with the Franchised Business, including the Mobile Services Unit, Approved Vehicle, Computer System, equipment, supplies, and inventory.
Spray Net also specifies that franchisees must ensure that all Required Items meet Spray Net's standards and specifications. Furthermore, franchisees must purchase all items Spray Net specifies from the Approved Supplier(s) that Spray Net designates, which may include Spray Net or its affiliate(s). The document also states that Spray Net and/or its affiliates may derive revenue from the offer and sale of Required Items.
This arrangement means that a Spray Net franchisee may be obligated to purchase or lease essential business items directly from Spray Net or its affiliated companies. This could impact the franchisee's costs and potentially reduce their ability to shop around for better deals. However, it also ensures that the franchisee uses items that meet Spray Net's standards, maintaining consistency across the brand.
If a franchisee wishes to purchase any unapproved item, including inventory, and/or acquire approved items from an unapproved supplier, the franchisee must provide Spray Net the name, address and telephone number of the proposed supplier, a description of the item Franchisee wishes to purchase, and the purchase price of the item, to the extent known. At Spray Net's request, a franchisee must also provide Spray Net, for testing purposes, a sample of the item the franchisee wishes to purchase. If Spray Net incurs any costs in connection with testing a particular product or evaluating an unapproved supplier at the franchisee's request, the franchisee must reimburse Spray Net for Spray Net's reasonable testing costs, regardless of whether Spray Net subsequently approves the item or supplier.