What is the dependency between obtaining required insurance coverages and attending the Initial Training Program for Spray Net?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor approves, prior to opening the Franchised Business.
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- Franchisee agrees and acknowledges that Franchisor may require Franchisee and its personnel to complete the components of the Initial Training Program that are provided via remote participation within thirty (30) days of the date this Agreement is executed.
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- Franchisee agrees and acknowledges that Franchisee must complete and/or satisfy the following Training Pre-Conditions before Franchisor will approve Franchisee or any of its designated trainees to attend the components of the Initial Training Program that are provided at Franchisor's headquarters or other designated training facility:
- i. payment of the Initial Training Fee and submission of Franchisee's Initial Marketing Investment amounting between $20,000 and $40,000 as discussed more fully in Section 9 of this Agreement;
- ii. undertake all steps to establish the Payment Account, as described in Section 4(B) of this Agreement, including providing Franchisor and/or its designee with all authorizations and approvals necessary to access such Payment;
- iii. demonstrate that Franchisee has obtained all required insurance coverages required
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a franchisee must demonstrate that they have obtained all required insurance coverages before being approved to attend the components of the Initial Training Program that are provided at Spray Net's headquarters or other designated training facility. This is one of several pre-conditions that must be met.
In practical terms, this means that a prospective Spray Net franchisee cannot fully participate in the in-person training program until they have secured the necessary insurance. This requirement ensures that the franchisee is adequately protected against potential liabilities from day one.
Other pre-conditions include payment of the Initial Training Fee and submission of Franchisee's Initial Marketing Investment amounting between $20,000 and $40,000, undertaking all steps to establish the Payment Account, and providing Spray Net with completed copies of all agreements and contracts that are attached as Exhibits to this Agreement that are signed by Franchisee and/or appropriate third party(ies), to the extent such documents have not been signed, completed or need to be updated as of that date.