Must a Spray Net franchisee indemnify the franchisor for third-party claims related to the franchisee's preparation or use of proprietary products?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will be solely responsible for storing and preparing the Proprietary Products for use in connection with providing the Approved Services once those products are delivered to Franchisee. Franchisor will not be responsible or liable in connection with any claims involving how the Proprietary Products are prepared and/or used by Franchisee once they are delivered to Franchisee. Franchisee must indemnify and hold Franchisor (and/or its designated supplier) harmless in connection with any third-party claims or damages arising out of or related to claims involving how the Proprietary Products are prepared and/or used by Franchisee once they are delivered to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a franchisee is required to indemnify the franchisor against third-party claims related to the franchisee's preparation and use of proprietary products once they are delivered to the franchisee. This means the franchisee assumes responsibility for any damages, losses, or liabilities arising from how they handle and utilize these products.
Specifically, Spray Net will not be held responsible or liable for claims involving the preparation and/or use of proprietary products by the franchisee after delivery. The franchisee must protect and hold Spray Net (and its designated supplier) harmless from any third-party claims or damages that arise from such activities. This obligation is a key part of the agreement, requiring the franchisee to cover legal costs and potential settlements associated with these claims.
This indemnification clause highlights the importance of proper training and adherence to Spray Net's guidelines when handling proprietary products. It also underscores the franchisee's responsibility to maintain adequate insurance coverage to address potential liabilities. Prospective franchisees should carefully consider this obligation and its potential financial implications before entering into a franchise agreement with Spray Net.