Does Spray Net guarantee a franchisee's performance of any supply contract with an approved supplier?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
If we approve any supplier, we will not guarantee your performance of any supply contract with that supplier under any circumstances.
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, Spray Net does not guarantee a franchisee's performance of any supply contract with an approved supplier under any circumstances. This means that if a franchisee enters into an agreement with a supplier that Spray Net has approved, the franchisee is solely responsible for fulfilling the terms of that contract. Spray Net will not step in to ensure the franchisee meets their obligations.
This lack of guarantee places the risk of supplier relationships squarely on the franchisee. If a supplier fails to deliver on their promises, provides substandard goods, or goes out of business, the franchisee will bear the consequences, not Spray Net. This could include financial losses, disruptions to the business, and damage to the franchisee's reputation.
While Spray Net approves suppliers, this approval is primarily for the benefit of maintaining system standards and quality control. The FDD states that approved suppliers must comply with Spray Net's requirements regarding insurance, indemnification, and non-disclosure. However, this does not translate into a guarantee of the supplier's performance for individual franchisees. Prospective franchisees should carefully vet any approved suppliers and consider their own due diligence before entering into any supply contracts.