What items in the Spray Net Franchise Disclosure Document (FDD) relate to the franchisee's obligations regarding site selection and acquisition/lease?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section in the Franchise | Item Number in this Disclosure | |
|---|---|---|
| Obligation | Agreement | Document |
| a. Site selection and | Sections 2(B), 2(C), 5(E), and | Items 11 and 12 |
| acquisition/lease | 6(A) and Exhibit A |
ITEM 12 TERRITORY
Grant of Territory
At the time of signing your Franchise Agreement we will designate your Designated Territory. The scope of your Designated Territory will vary from the scope and size of the operating territories of other franchisees in our System depending on local factors, market conditions, and whether or not, at the time of signing your Franchise Agreement, you increase the size of your Designated Territory from a Base Territory to a Base Territory that has been supplemented by the purchase of additional Qualified Single-Family Households and/or Additional Territories. A Base Territory, generally, will consist of a geographic area that includes approximately 75,000 qualified single family households with annual household income exceeding $60,000 (each a "Qualified Single-Family Household"). Subject to availability, our approval, and payment of additional Initial Franchise Fees identified in Item 5 of this Disclosure Document, you may add additional Qualified Single-Family Households and/or Additional Designated Territories. Each Additional Designated Territory will also include approximately 75,000 Qualified Single-Family Households. The number of single-family households with the required household income level will be determined in the aggregate and will be calculated based on raw data and without regard to demographics or age. Your local marketing expenditure will increase if you add Additional Designated Territories.
Relocation
We do not expect or intend to refuse your request for relocation unless it is clear that your proposed relocation site is not suitable for the operational base of a Franchised Business (including parking for all Approved Vehicle(s) that are equipped in accordance with System standards). If you can nolonger use the location due to circumstances beyond your control, including unreasonable lease terms or destruction of the premises, we will not unreasonably withhold our written consent to relocate.
Establishment of Additional Franchised Businesses
You do not have the right to establish additional Spray-Net Franchised Businesses.
Options and Rights of First Refusal to Acquire Additional Franchises
You are not granted any options, rights of first refusal, or similar rights to acquire additional franchises.
Territory Rights
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 36–37)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including those related to site selection and acquisition/lease. Specifically, Section a of Item 9 references Sections 2(B), 2(C), 5(E), and 6(A) of the Franchise Agreement, as well as Items 11 and 12 of the FDD, as detailing the franchisee's responsibilities in this area. This indicates that prospective Spray Net franchisees should carefully review these sections to understand their obligations regarding site selection and acquisition/lease.
Item 12 further elaborates on the territory granted to the franchisee. At the time of signing the Franchise Agreement, Spray Net will designate the franchisee's Designated Territory. The scope of the territory can vary depending on local factors, market conditions, and whether the franchisee increases the size of their territory from a Base Territory by purchasing additional Qualified Single-Family Households and/or Additional Territories. A Base Territory generally consists of a geographic area that includes approximately 75,000 qualified single-family households with an annual household income exceeding $60,000.
Spray Net does not expect to refuse a relocation request unless the proposed site is unsuitable for the operational base, including parking for approved vehicles. If the franchisee can no longer use the location due to circumstances beyond their control, such as unreasonable lease terms or destruction of the premises, Spray Net will not unreasonably withhold consent to relocate. Franchisees do not have the right to establish additional Spray-Net Franchised Businesses or acquire additional franchises.