If Spray Net modifies or discontinues a trademark, who is responsible for the tangible costs of compliance for a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
You must modify or discontinue the use of a trademark if we modify or discontinue it. If this happens, you will be responsible for your tangible costs of compliance (for example, changing exterior and interior signage, advertisements and promotional material, etc.). We are not obligated to reimburse you for any loss of revenue attributable to the modified or discontinued mark or for any expenditure you incur to promote a modified or substitute mark.
Source: Item 13 — TRADEMARKS (FDD pages 52–53)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, if Spray Net modifies or discontinues a trademark, the franchisee is responsible for the tangible costs of compliance. These costs include expenses related to changing exterior and interior signage, advertisements, and promotional materials. This means that if Spray Net decides to change its branding or discontinue a particular trademark, franchisees will have to bear the financial burden of updating their business's visible elements to align with the new branding.
Spray Net is not obligated to reimburse franchisees for any loss of revenue resulting from the modified or discontinued mark. Additionally, Spray Net will not cover any expenses franchisees incur to promote a modified or substitute mark. This places the financial risk of rebranding squarely on the franchisee, as they must invest in updating their business's appearance and marketing materials without any financial assistance from Spray Net.
This arrangement is not uncommon in franchising, as franchisors often retain the right to modify their trademarks to maintain brand consistency or adapt to market changes. However, it's crucial for prospective Spray Net franchisees to understand the potential financial implications of such changes. Franchisees should factor in these potential costs when evaluating the overall investment and profitability of a Spray Net franchise. It would be prudent for a prospective franchisee to inquire about the likelihood of trademark changes and the potential costs associated with compliance to better prepare for such scenarios.