factual

Does inaction by Spray Net constitute a waiver of its rights and remedies?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

    1. Deferral. Due to our financial condition, the Illinois Attorney General's Office requires that the payment of initial fees be deferred until franchisor has satisfied its pre-opening obligations to franchisee and the franchise is open for business.
    1. Effective Date. This Rider is effective as of the Effective Date.

Agreed to by:

SPRAY-NET INC. ©2025 Spray-Net Inc.

SPRAY-NET INC. MARYLAND ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT

No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

The following is added to Item 5:

Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance.

Source: Item 23 — RECEIPTS (FDD pages 75–219)

What This Means (2025 FDD)

Based on the 2025 Spray Net Franchise Disclosure Document, the addenda for Maryland, New York, and North Dakota state that certain provisions within the franchise agreement do not act as a waiver of liability or rights under state franchise laws. Specifically, in Maryland, no statement or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Spray Net. Similarly, in New York, the choice of law should not be considered a waiver of any right conferred upon the franchisor or franchisee by the General Business Law of the State of New York.

For a prospective Spray Net franchisee, these stipulations provide additional protection by ensuring that franchisees do not unknowingly or unintentionally relinquish their rights under state laws. This means that even if certain clauses in the franchise agreement seem to limit Spray Net's liability or the franchisee's ability to make claims, these clauses may not be enforceable under the franchise laws of Maryland, New York, or North Dakota. This protection extends to claims of fraud and reliance on statements made by Spray Net during the franchise sales process.

It is important for franchisees to be aware of these state-specific addenda and how they modify the standard franchise agreement. Franchisees should consult with legal counsel to fully understand their rights and obligations under the franchise agreement and applicable state laws. These addenda reflect a commitment to comply with state franchise laws, which are designed to protect franchisees from unfair or deceptive practices. The presence of these addenda suggests that Spray Net acknowledges and respects the regulatory environment in these states, providing a degree of assurance to potential franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.