What happens if a Spray Net franchisee defaults on an agreement with an affiliate or approved supplier?
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.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
Based on the 2025 Spray Net Franchise Disclosure Document, franchisees are responsible for all debts and obligations incurred while operating their franchise. This includes any agreements with Spray Net's affiliates or approved suppliers. If a Spray Net franchisee fails to meet their financial obligations, they are solely responsible for those debts.
Spray Net franchisees must promptly pay all federal, state, and local taxes when due. This includes unemployment, workers' compensation, lodging, and sales taxes related to the services or products they provide. They are also responsible for all accounts and other debts they incur while operating the Spray Net franchise.
In practical terms, this means that if a Spray Net franchisee defaults on a payment to an approved supplier, the supplier will likely pursue the franchisee directly for the debt. Spray Net itself is not responsible for the franchisee's debts. Therefore, it is critical for prospective franchisees to carefully manage their finances and maintain good relationships with suppliers to avoid defaults and potential legal action.