Even with a Designated Manager, who is ultimately responsible for all aspects of the Spray Net franchise operation?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
- V. Personal Participation by Franchisee.
Franchisee must personally participate in the direct management operation of the Franchised Business on a full-time basis, unless Franchisee engages a Designated Manager of whom Franchisor approves in writing to manage the day-to-day operations of the Franchised Business when Franchisee is not present.
If Franchisee designates a manager at any time, that manager must successfully complete the Initial Training Program prior to assuming any management responsibilities in connection with the Franchised Business.
Regardless, Franchisee is solely responsible for all aspects of the operation of the Franchised Business and ensuring that all the terms, conditions, and requirements contained in this Agreement and in the Manuals are met and kept.
If Franchisee engages a Designated Manager to manage the day-to-day operations of the Franchised Business, such Designated Manager must, by one (1) year after the Franchised Business opens for business, either (i) own ten percent (10%) of the equity interest in Franchisee and/or the Franchised Business or (ii) be granted a compensation package that grants the Designated Manager ten percent (10%) of the equity interest in Franchisee and/or the Franchised Business within a reasonable period of time.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the franchisee retains ultimate responsibility for all aspects of the franchise, even if a Designated Manager is in place. The franchisee must personally participate in the direct management and operation of the Spray Net business on a full-time basis, unless a Designated Manager is engaged and approved by Spray Net in writing to manage the day-to-day operations when the franchisee is not present.
Even with a Designated Manager, the franchisee is solely responsible for ensuring that all terms, conditions, and requirements outlined in the franchise agreement and the manuals are met and maintained. This means that even if the manager handles the daily tasks, the franchisee is accountable for the franchise's overall performance and compliance with Spray Net's standards.
Furthermore, if a Designated Manager is appointed, they must complete the Initial Training Program before assuming any management responsibilities. Additionally, within one year after the franchise opens, the Designated Manager must either own 10% of the equity interest in the franchise or be granted a compensation package that provides them with 10% equity interest within a reasonable timeframe. This equity stake or compensation package aims to align the manager's interests with the success of the Spray Net franchise, but it does not relieve the franchisee of their ultimate responsibility.