What are the conditions that a Spray Net franchisee must meet before becoming eligible to provide Ancillary Services?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
ial locations for each Franchised Business, and resulting Designated Territories (as defined below), within the Site Selection Area will be reviewed and rejected/granted on a first-to-propose basis.
C. Designated Territory.
-
- Franchisee shall only have the right to operate the Franchised Business and offer/provide the Approved Services and, if applicable, Ancillary Services, in connection with homes that are located within the designated territory as stated in Section 3 of the Data Sheet (the "Designated Territory"). If Franchisee is granted the right to operate the Franchised Business in more than one Designated Territory, the number of Designated Territories shall be set forth in Section 3 of the Data Sheet. Franchisor may ask Franchisee to provide the Approved Services and/or Ancillary Services outside of the Designated Territory under certain circumstances. If Franchisee agrees to provide such Approved Services and/or Ancillary Services outside of the Designated Territory upon Franchisor's request, Franchisor shall reimburse Franchisee for all actual costs related to providing such Approved Services and/or Ancillary Services upon receiving receipts for such costs from Franchisee.
-
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, a franchisee's eligibility to provide Ancillary Services is tied to their compliance with the Franchise Agreement. Specifically, the franchisee must be in compliance with the agreement to have the right to offer Ancillary Services within their designated territory.
However, the FDD also states that even if a franchisee chooses not to offer Ancillary Services, Spray Net retains the right to offer these services within the franchisee's designated territory either directly, through an affiliate, or by authorizing another franchisee. Spray Net can also sell franchise rights to a third party to offer Ancillary Services within the existing franchisee's territory.
It's important to note that if Spray Net exercises its right to offer Ancillary Services within a franchisee's territory, the franchisee will not be entitled to any remuneration. This means that while compliance with the Franchise Agreement is necessary for a franchisee to offer Ancillary Services, it does not guarantee exclusive rights to those services within their territory, nor does it prevent Spray Net from offering those services through other channels.