What is the Spray Net franchisee's obligation regarding the System?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
The parties agree and acknowledge that Franchisor may change, improve, further develop, or otherwise modify the System from time to time as it deems appropriate in its discretion.
Franchisee hereby acknowledges and agrees that: (i) while the System and Franchisor's related materials contain information that, in isolated form, could be construed as being in the public domain, they also contain significant proprietary and confidential information that makes the System unique as a whole; and (ii) the combined methods, information, procedures, and theories that make up the total System or are contained in the relevant manuals that are proprietary and confidential.
Franchisor may also establish and maintain a website portal or other intranet for use by Franchisee and other Franchised Business owners (the "Spray-Net Web Portal"), where Franchisor may post content that will automatically become part of, and constitute a supplement to, the Manuals, all of which Franchisee must strictly comply with promptly after such content is posted or otherwise listed on the Spray-Net Web Portal.
Franchisor will provide Franchisee with at least one (1) email address, which: (i) Franchisee is required to use in connection with the Franchised Business; and (ii) must be the only email addresses used in connection with the Franchised Business.
Franchisee may be required to purchase these items from Franchisor or any other Approved Supplier that Franchisor designates.
Miscellaneous: The Franchise Owner understands they are responsible to comply with the privacy policy of their City, State or Province and Country. It is the responsibility of the franchise owner to notify SPRAY-NET of specific conditions and laws related to third party privacy and confidentiality regulations regarding confidentiality and consumer data protection.
All other legal contract requirements, terms and conditions must be updated by the franchise owner under the System Settings configurable to their local territory. Including and not limited to: Contract warranty terms and conditions, taxes, business license information, contact information and liability insurance details.
Acknowledgement of Risks and Limitations: It is the responsibility of the franchise owner and employees operating the software Spray-Network to verify price and paint volume calculations. SPRAY-NET is not responsible for the suggested pricing and paint quantities in the SPRAY-NETWORK. The franchise owner and employees must validate and approve all pricing and paint volume recommendations in the Spray-Network.
Franchisor reserves the right to require Franchisee to expend any portion of the Local Advertising Requirement on (a) products or services Franchisor directs or approves, or (b) services that Franchisee must acquire from an Approved Supplier (which currently includes Franchisor).
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.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees must operate their business by adhering to the Spray Net System and using the Proprietary Marks for promotion within their designated territory. Franchisees cannot use the System or Proprietary Marks for any other purpose. Spray Net retains the right to modify the System as it sees fit. Franchisees must also comply with the Spray-Net Web Portal.
Spray Net will provide franchisees with at least one email address that must be used exclusively for the franchised business. Franchisees may be required to purchase private label products from Spray Net or its approved suppliers. Franchisees are responsible for complying with privacy policies and updating legal contract requirements within the Spray-Network software, including warranty terms, taxes, and insurance details.
Spray Net may require franchisees to spend a portion of their local advertising budget on products or services that Spray Net directs or approves, potentially requiring purchases from specific approved suppliers, including Spray Net itself. Franchisees must also ensure the business has a dedicated phone line and is listed in designated internet directories and Chambers of Commerce. Franchisees are also responsible for verifying price and paint volume calculations within the Spray-Network software, as Spray Net is not liable for the suggested pricing or paint quantities.
Franchisees must also obtain at least three 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.