What costs are included in the reimbursement for touch-up work provided by Spray Net or its affiliates?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
If, after the termination or expiration of this Agreement, Franchisor, an affiliate of Franchisor, or another Spray-Net franchisee provides touch-up work for customers to whom Franchisee provided Approved Services, Franchisee shall reimburse Franchisor, Franchisor's affiliate(s), or another Spray-Net franchisee the actual costs of providing such touch-up work upon demand.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a franchisee may have to reimburse Spray Net, its affiliates, or another Spray-Net franchisee for touch-up work provided to the franchisee's customers after the franchise agreement terminates or expires. The franchisee is responsible for reimbursing the actual costs of providing the touch-up work.
This means that if a customer of a former Spray Net franchisee requires touch-up services after the franchise agreement ends, and Spray Net or another franchisee provides those services, the former franchisee will be billed for the costs incurred. These costs are not defined in the excerpt.
Prospective franchisees should clarify with Spray Net what specific expenses are included as 'actual costs' for touch-up work. Understanding this will help a franchisee budget for potential post-termination expenses and understand the full financial implications of the franchise agreement.