What is the Spray Net franchisee's obligation regarding the Franchised Business?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Taxes. Franchisee must promptly pay when due any and all federal, state, and local taxes, including without limitation, unemployment, workers' compensation, lodging, and sales taxes which are levied or assessed with respect to any services or products furnished, used, or licensed under this Agreement and all accounts or other indebtedness of every kind incurred by Franchisee in the operation of the Franchised Business.
- B. Debts and Obligations. Franchisee hereby expressly covenants and agrees to accept full and sole responsibility for any and all debts and obligations incurred in the operation of the Franchised Business.
C. Designated Territory.
Franchisee shall only have the right to operate the Franchised Business and offer/provide the Approved Services and, if applicable, Ancillary Services, in connection with homes that are located within the designated territory as stated in Section 3 of the Data Sheet (the "Designated Territory").
If Franchisee is granted the right to operate the Franchised Business in more than one Designated Territory, the number of Designated Territories shall be set forth in Section 3 of the Data Sheet.
Franchisor may ask Franchisee to provide the Approved Services and/or Ancillary Services outside of the Designated Territory under certain circumstances.
If Franchisee agrees to provide such Approved Services and/or Ancillary Services outside of the Designated Territory upon Franchisor's request, Franchisor shall reimburse Franchisee for all actual costs related to providing such Approved Services and/or Ancillary Services upon receiving receipts for such costs from Franchisee.
- D. Rights Not Granted.
Franchisee acknowledges and agrees that this Agreement does not grant Franchisee any right or option to open any additional Franchised Businesses nor does this Agreement Franchisee may not use the Proprietary Marks or System for any purpose other than promoting and operating the Franchised Business at the Premises and within the Designated Territory. At Franchisor's option, Franchisee must ensure that: (i) the Franchised Business has a dedicated phone line for use in connection with the Franchised Business only; and (ii) the Franchised Business is listed in the appropriate Internet-based directories and Chamber(s) of Commerce that Franchisor designates.
Franchisee shall obtain at least three (3) telephone numbers solely dedicated to the Franchised Business, which Franchisee shall assign to Franchisor, at Franchisor's option, upon termination, expiration, or transfer of this Agreement.
Franchisee must list and advertise the telephone number(s) for the Franchised Business in the "White pages" telephone director and the classified or "yellow pages" telephone directory distributed in its trade area and under such categories as Franchisor may specify from time to time.
Franchisee must place the classified directory advertisement and listings together with other Spray-Net Businesses operating within the distribution area of the directory.
If a joint listing is obtained, all Spray-Net Businesses listed together shall pay a pro rata share of the cost of all advertisements and listings.
Furthermore, Franchisee shall obtain listings and/or advertise with Franchisor and other franchisees of the System on electronic yellow pages directory and other online directors as Franchisor may designate, including Google Local, Google Business, Angie's List or similar online directory.
In the event Franchisee does not comply with Franchisor's requests regarding such online listings or advertisement, Franchisor reserves the right to place, modify, or remove such listings and advertisements on behalf of Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net FDD, franchisees have several obligations regarding their franchised business. Spray Net franchisees must promptly pay all federal, state, and local taxes related to the services or products offered, used, or licensed under the Franchise Agreement. They are also solely responsible for all debts and obligations incurred while operating the Spray Net franchised business.
Spray Net franchisees are obligated to operate their franchised business and offer approved services only within their designated territory, as specified in the Data Sheet. While franchisees can be asked to provide services outside their territory, Spray Net will cover the actual costs if the franchisee agrees and provides receipts. Franchisees do not have the right to open additional Spray Net franchised businesses or sublicense any rights granted to them. They are restricted from using Spray Net's proprietary marks or system for any purpose other than promoting and operating the franchised business within their designated territory.
Spray Net franchisees must also adhere to specific advertising and listing requirements. They need to secure at least three dedicated phone lines for the business, which can be assigned to Spray Net upon termination, expiration, or transfer of the agreement. Franchisees are required to list and advertise the phone numbers in both white and yellow pages directories under categories specified by Spray Net, ideally with other Spray Net businesses in the area sharing the costs pro rata. Additionally, franchisees must list and advertise with Spray Net and other franchisees on electronic yellow pages and online directories like Google Local and Angie's List. If a franchisee fails to comply with online listing requests, Spray Net reserves the right to manage these listings on their behalf.