Can Spray Net or its affiliates be designated as an approved supplier for franchisees?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
u must obtain our prior written approval as described more fully in this Item.
Approved Suppliers
We have the right to require you to purchase or lease any items or services necessary to operate your Franchised Business, including but not limited to equipment, fixtures, inventory, and paper goods, from a supplier that we approve or designate (each, an "Approved Supplier"), which may include us or our affiliate(s). We will provide you with a list of our Approved Suppliers in writing as part of our Manual or otherwise in writing, and we may update or modify this list as we deem appropriate.
As of the Issuance Date, we have Approved Suppliers for the following items: (i) the business management software and certain other required software that you must license and use in connection with your Franchised Business (collectively, the "Required Software"); (ii) equipment (including Mobile Services Unit) that we expect, and our standard offering assumes, you will lease from a third-party lessor we approve or authorize; (iii) the Marketing Kit, Production Supplies Kit, and Sales Kit; (iv) supplies such as masking paper, tape, and caulking; (v) vehicle signage and related installation; and (vi) all or some of the marketing, advertising and promotional materials and services on which you must expend your Local Advertising Requirement and Initial Marketing Investment; (vii) home show booth and spray booth; (viii) call center and sales center; (xiv) accounting software (QuickBooks); (xv) bookkeeping services (Journey); and (xvi) if and once applicable, certain equipment, hardware and/or operating supplies necessary to provide one (1) or more of the Ancillary Services we approve or otherwise require you to provide as described more fully in Item 16 of this Disclosure Document.
As of the Issuance Date, be advised that: (i) SN Distribution is the designated supplier for Proprietary Products and some inventory/supplies necessary to provide the Approved Services and/or operate the Franchised Business;
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–36)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Spray Net or its affiliates can be designated as an approved supplier for franchisees. Spray Net has the right to require franchisees to purchase or lease items or services, including equipment, fixtures, inventory, and paper goods, from an approved or designated supplier, which may include Spray Net or its affiliates.
The FDD lists several items for which Spray Net or its affiliates are designated suppliers. SN Distribution is the designated supplier for Proprietary Products and some inventory/supplies. Spray Net is the designated supplier for the Marketing Kit, Production Supplies Kit, and Sales Kit, the System-associated business management software, and certain digital and other marketing management services. Franchisees must expend a portion of their Initial Marketing Investment and Local Advertising Requirement on these marketing management services.
Spray Net also derives revenue from franchisee purchases. In 2024, Spray Net derived $1,490,118 in revenue from franchisee required purchases of digital marketing, initial marketing investment, and tech packages, which was 52.03% of their total revenue of $2,863,931. SN Distribution's revenue from the sale of paints and supplies to U.S. franchisees was $1,172,603 in 2024. Carmelo Marsala and David Garofano own interests in Groupe Spray-Net and, through its subsidiaries, including SN Distribution, will indirectly derive revenue from required franchisee purchases.