What document must a Spray Net franchisee enter into to memorialize their satisfaction of conditions for offering Ancillary Services?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
- o Your Franchised Business generating Gross Sales necessary to meet and exceed your thencurrent Minimum Gross Sales under the Franchise Agreement by 15% for a period of at least three (3) consecutive months; and
- o You entering into a form of addendum to the Franchise Agreement memorializing your satisfaction of the above conditions, the specific Ancillary Service(s) you will be authorized to offer moving forward until such time that we advise you that (a) you are in material default of your Franchise Agreement and must therefore cease provision of the Ancillary Services until such default is cured, or (b) we are no longer authorizing the provision of the Authorized Services by your Franchised Business and the bases for this decision (with at least 30 days' prior notice, if and as possible), which may also contain a general release by you of us and our related parties.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 55–57)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a franchisee must enter into a form of addendum to the Franchise Agreement to document their satisfaction of conditions for offering Ancillary Services. This addendum serves as a formal acknowledgment that the franchisee has met the necessary requirements to provide these additional services.
Specifically, the addendum will authorize the franchisee to offer the Ancillary Services moving forward. However, this authorization is contingent upon the franchisee remaining in compliance with the Franchise Agreement. Spray Net retains the right to revoke this authorization if the franchisee materially defaults on the agreement and fails to cure the default. Additionally, Spray Net can discontinue the authorization to provide Ancillary Services with at least 30 days' notice (if possible), outlining the reasons for the decision.
The addendum may also include a general release by the franchisee of Spray Net and its related parties. This implies that by signing the addendum, the franchisee agrees to release Spray Net from certain liabilities related to the provision of Ancillary Services. This is a fairly standard legal protection for franchisors when franchisees expand their service offerings. Prospective franchisees should carefully review the terms of this addendum and understand the implications of the release before signing.
Overall, this addendum ensures that both Spray Net and the franchisee are aligned on the terms and conditions under which Ancillary Services are offered, providing a clear framework for the expanded business relationship.