Does the Spray Net franchise agreement acknowledge that the business venture involves business risks?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Acknowledgement of Risks and Limitations: It is the responsibility of the franchise owner and employees operating the software Spray-Network to verify price and paint volume calculations. SPRAY-NET is not responsible for the suggested pricing and paint quantities in the SPRAY-NETWORK. The franchise owner and employees must validate and approve all pricing and paint volume recommendations in the Spray-Network.
The Spray-Net is not responsible for loss or stalling of work and operations, difference in prices and pricing, paint.
Issues with the Spray-Network that may impact a franchise owner's operations and bottom line including and not limited to; loss of connection to the internet, failure to use the modules as intended, bugs, failure to refresh the cache following system updates.
Upon participating in Beta launches of new modules and features, the franchise owner and his employee understands the risks and limitations in consideration of their participation in a soft launch. They may encounter an influx of user issues, bugs and issues which could impact their operations and take on this risk to participate as a pioneer and test user of upcoming features.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, the franchise agreement acknowledges risks and limitations for franchise owners. Specifically, Spray Net franchise owners are responsible for verifying the accuracy of price and paint volume calculations generated by the Spray-Network software. Spray Net explicitly states it is not responsible for the suggested pricing and paint quantities within the software, placing the onus on the franchisee to validate and approve these recommendations. This highlights a potential risk where errors in pricing or paint volume could negatively impact a franchisee's profitability if not carefully monitored.
Spray Net also disclaims responsibility for potential disruptions to a franchise owner's operations and financial performance due to issues with the Spray-Network software. These issues include loss of internet connection, failure to properly use the software modules, software bugs, and failure to refresh the system cache after updates. These technical issues could lead to work stoppages, pricing discrepancies, and other operational challenges that affect the franchisee's bottom line.
Furthermore, the Spray Net franchise agreement addresses the risks associated with participating in beta launches of new software modules and features. Franchisees who participate in these soft launches acknowledge that they may encounter an influx of user issues and bugs that could impact their operations. By participating, franchisees accept the risk of these potential disruptions in exchange for being early adopters and testers of upcoming features. This indicates that Spray Net acknowledges the inherent risks involved in using new and unproven software and requires franchisees to understand these risks before participating in beta programs.