Does a Spray Net franchisee have territorial rights within the Site Selection Area?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that: (i) it does not have any territorial rights within the Site Selection Area; (ii) Franchisor may permit other new franchisees to search for the location of their Franchised Business within the same Site Selection Area that is assigned to
Franchisee under this Agreement if Franchisor determines in its discretion that the Site Selection Area is large enough to contain additional franchises; and (iii) potential locations for each Franchised Business, and resulting Designated Territories (as defined below), within the Site Selection Area will be reviewed and rejected/granted on a first-to-propose basis.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a franchisee does not have territorial rights within the Site Selection Area. The Site Selection Area is a general marketing area designated by Spray Net where the franchisee must find a location for their business. Spray Net may allow other new franchisees to search for locations within the same Site Selection Area if they determine the area is large enough to support additional franchises. Potential locations and resulting Designated Territories will be reviewed and approved on a first-to-propose basis.
This means that while a Spray Net franchisee is granted a specific Designated Territory once a location is approved, the initial Site Selection Area is a shared space where multiple franchisees may be looking for suitable locations. This creates a competitive environment among new franchisees to secure the best available sites first.
For a prospective Spray Net franchisee, this underscores the importance of quickly and thoroughly evaluating potential locations within the Site Selection Area. It also highlights the need for a strong business plan and the ability to act decisively to secure a favorable site before another franchisee does. Franchisees should also inquire about the criteria Spray Net uses to determine if a Site Selection Area can accommodate additional franchises to understand the potential for future competition in the area.