If Spray Net modifies or substitutes its proprietary marks, will the franchisee be reimbursed for out-of-pocket expenses?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
If in Franchisor's reasonable determination, the use of Proprietary Marks in connection with the System will infringe or potentially infringe upon the rights of any third party, weakens or impairs Franchisor's rights in the Proprietary Marks, or it otherwise becomes advisable at any time in Franchisor's sole discretion for Franchisor to modify, discontinue, or to use one (1) or more additional or substitute trade or service Proprietary Marks then upon notice from Franchisor, Franchisee will terminate or modify, within a reasonable time, such use in the manner prescribed by Franchisor.
If Franchisor changes the Proprietary Marks in any manner, Franchisor will not reimburse Franchisee for any out-of-pocket expenses that Franchisee incurs to implement such modifications or substitutions.
Franchisor is not obligated to reimburse Franchisee for any loss of goodwill or revenue associated with any modified or discontinued Proprietary Mark, nor is Franchisor responsible for reimbursing Franchisee for any other costs or damages
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, if Spray Net modifies or substitutes its proprietary marks, franchisees will not be reimbursed for any out-of-pocket expenses incurred to implement these changes. This includes costs associated with modifying signage, marketing materials, or any other items bearing the old marks. Additionally, Spray Net is not obligated to compensate franchisees for any loss of goodwill or revenue resulting from the modified or discontinued marks, nor for any other related costs or damages.
This policy places the financial burden of rebranding on the franchisee. Franchisees need to be aware that they will be responsible for covering all expenses related to updating their business to reflect any changes to the Spray Net's proprietary marks. This could involve significant and unexpected costs, especially if the changes require extensive modifications to existing materials or infrastructure.
Prospective Spray Net franchisees should carefully consider this potential financial responsibility and factor it into their business planning. It would be prudent to inquire about the likelihood and frequency of such changes, as well as the potential costs involved, during the due diligence process. Understanding the brand's history of mark modifications and the reasons behind them can provide valuable insight into the potential for future expenses related to rebranding.