Is a Spray Net franchisee required to reimburse Spray Net for costs associated with testing or inspecting a proposed supplier?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
If you wish to undertake either of these actions, you must request and obtain our approval in writing before: (i) using or offering the non-approved product or service in connection with your Franchised Business; or (ii) purchasing from a non-approved supplier. We may ask you to submit samples or information so that we can make an informed decision whether the goods, equipment, supplies or supplier meet our specifications and quality standards. In evaluating a supplier that you propose to us, we consider not only the quality of the particular product at issue, but also the supplier's production and delivery capability, overall business reputation and financial condition. We may provide any alternate supplier you propose with a copy of our then-current specifications for any product(s) you wish the supplier to supply, provided the supplier enters into a confidentiality and non-disclosure agreement in the form we specify. We may also inspect a proposed supplier's facilities and test its products, and request that you reimburse our actual costs associated with the testing/inspection.
We will notify you in writing within 30 days after we receive all necessary information and/or complete our inspection or testing to advise you if we approve or disapprove the proposed item and/or supplier. The criteria we use in approving or rejecting new suppliers is proprietary, but we may (but are not required to) make it available to you upon request. Each supplier that we approve of must comply with our usual and customary requirements regarding insurance, indemnification and non-disclosure. If we incur any costs in connection with testing a particular product or evaluating an unapproved supplier at your request, you must reimburse us for our reasonable testing costs, regardless of whether we subsequently approve the item or supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–36)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a franchisee may be required to reimburse Spray Net for costs associated with testing or inspecting a proposed supplier. If a franchisee wants to purchase from a non-approved supplier, they must first request and obtain written approval from Spray Net. As part of this process, Spray Net may inspect the proposed supplier's facilities and test its products.
Spray Net can request that the franchisee reimburse Spray Net's actual costs associated with this testing and inspection. This reimbursement is required regardless of whether Spray Net ultimately approves the proposed supplier. Spray Net will notify the franchisee in writing within 30 days after receiving all necessary information or completing the inspection or testing to advise whether the proposed supplier is approved or disapproved.
Spray Net may provide the alternate supplier with a copy of their current specifications for the products the franchisee wants the supplier to provide, but the supplier must enter into a confidentiality and non-disclosure agreement. The criteria Spray Net uses to approve or reject new suppliers is proprietary, but Spray Net may make it available to the franchisee upon request. Approved suppliers must also comply with Spray Net's usual requirements regarding insurance, indemnification, and non-disclosure.
This policy means that a Spray Net franchisee could incur expenses for testing and inspection of alternative suppliers, even if those suppliers are ultimately not approved. This could add to the cost of goods and services if the franchisee seeks options beyond Spray Net's approved suppliers. Franchisees should carefully consider these potential costs and the likelihood of approval before requesting an evaluation of a non-approved supplier.