What collision and comprehensive coverage requirements exist for franchisee-owned vehicles used in connection with operating a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
lacement value of the premises of the Franchised Business and its furniture, fixtures, and equipment;
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- Auto insurance for any Approved Vehicle used in connection with operating the Franchised Business, including Franchisee-owned vehicles and non-Franchisee-owned vehicles, which will include liability coverage in the minimum amount of Two Million Dollars ($2,000,000) per year, as well as commercial auto insurance for Franchisee-owned vehicles, which will include collision and comprehensive coverage as well as liability coverage in the minimum amount of $250,000 per person a
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, franchisees are required to maintain specific auto insurance coverage for vehicles used in their business operations. This includes both franchisee-owned and non-franchisee-owned vehicles. For franchisee-owned vehicles, the required insurance must include collision and comprehensive coverage.
In addition to collision and comprehensive coverage, Spray Net franchisees must also maintain liability coverage of at least $250,000 per person and $500,000 per accident per year. However, if state regulations mandate higher minimums, the franchisee must adhere to the state's requirements. The FDD also states that auto insurance for any approved vehicle used in connection with operating the franchised business, including franchisee-owned vehicles and non-franchisee owned vehicles, will include liability coverage in the minimum amount of $2,000,000 per year.
This insurance requirement ensures that Spray Net franchisees have adequate financial protection in case of accidents or damages involving their vehicles. It also protects the franchisor, Spray Net, from potential liabilities arising from the franchisee's operations. Franchisees must ensure they obtain the required coverage from insurance carriers that meet Spray Net's standards, as outlined in the FDD.