Does the Spray Net franchise agreement specify any requirements for the then-current franchise agreement that must be executed for renewal of a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
tion 3(B) | You have the right to be considered for one (1) additional 10- | | extension of the term | | year term. |
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| c. | Requirements for franchisee to renew or extend | Section 3(B) | In order to renew (which means renewing your franchise relationship with us), you must: (i) not have any uncured material defaults under your Franchise Agreement (including any monetary defaults) or any other agreement between you and us; (ii) execute our then-current franchise agreement (which may contain materially different terms and conditions than your original franchise agreement); (iii) pay us our renewal fee of $10,000; (iv) complete our then-current refresher training course; (v) execute a general release; (vi) must have participate in and supported the operatio |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–62)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees must execute the then-current franchise agreement to renew their franchise. This new agreement may contain materially different terms and conditions from the original franchise agreement.
In addition to executing the current franchise agreement, Spray Net requires franchisees to meet several other conditions for renewal. These include: resolving any outstanding material defaults under the existing Franchise Agreement, including monetary defaults; paying a renewal fee of $10,000; completing a refresher training course; executing a general release; actively participating in and supporting Spray Net's recommended operational procedures; and re-imaging, renovating, refurbishing, and modernizing the Approved Vehicles and Franchised Business.
The requirement to sign a new franchise agreement with potentially different terms is a significant point for prospective Spray Net franchisees. It means that renewal is not guaranteed on the same terms as the original agreement, and the franchisee may need to accept new conditions or obligations to continue operating. This is a fairly standard practice in franchising, as franchisors update their agreements to reflect changes in the market, legal requirements, or the Spray Net system itself.
Prospective franchisees should carefully consider these renewal conditions and discuss with Spray Net the types of changes that might be included in a future franchise agreement. Understanding the potential scope of these changes is crucial for long-term business planning and financial forecasting. Franchisees should also be prepared to invest in ongoing training and upgrades to their vehicles and business to meet Spray Net's evolving standards.