What must a location have to be approved for a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
ial locations for each Franchised Business, and resulting Designated Territories (as defined below), within the Site Selection Area will be reviewed and rejected/granted on a first-to-propose basis.
C. Designated Territory.
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- Franchisee shall only have the right to operate the Franchised Business and offer/provide the Approved Services and, if applicable, Ancillary Services, in connection with homes that are located within the designated territory as stated in Section 3 of the Data Sheet (the "Designated Territory"). If Franchisee is granted the right to operate the Franchised Business in more than one Designated Territory, the number of Designated Territories shall be set forth in Section 3 of the Data Sheet. Franchisor may ask Franchisee to provide the Approved Services and/or Ancillary Services outside of the Designated Territory under certain circumstances. If Franchisee agrees to provide such Approved Services and/or Ancillary Services outside of the Designated Territory upon Franchisor's request, Franchisor shall reimburse Franchisee for all actual costs related to providing such Approved Services and/or Ancillary Services upon receiving receipts for such costs from Franchisee.
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- For so long as Franchisee is in compliance with this Agreement, Franchisor will not establish or operate, or license a third party the right to establish or operate, any other Business that utilizes the System and Proprietary Marks from a premises within the Designated Territory.
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- Notwithstanding the foregoing, regardless of whether Franchisee offers or declines to offer Ancillary Services, (1) Franchisor or an affiliate of Franchisor may offer and/or provide such Ancillary Services within the Designated Territory, (2) Franchisor may authorize another Spray-Net franchisee to offer and/or provide such Ancillary Services within the Designated Territory, or (3) Franchisor may offer and sell franchise rights to a third party under the Spray-Net brand or otherwise to offer and/or provide such Ancillary Services within the Designated Territory. If Franchisor exercises any of its rights in this Section, there shall be no remuneration due to Franchisee.
- D. Rights Not Granted. Franchisee acknowledges and agrees that this Agreement does not grant Franchisee any right or option to open any additional Franchised Businesses nor does this Agreement provide Franchisee with any right to sub-license or sub-franchise any of the rights granted hereunder.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
Based on the 2025 Spray Net Franchise Disclosure Document, the requirements for an approved location include having a designated territory as stated in Section 3 of the Data Sheet. Franchisees can only operate their Spray-Net business and offer approved services within this territory. If a franchisee has rights to operate in multiple territories, the number of territories will be listed in Section 3 of the Data Sheet.
Spray Net may request a franchisee to provide services outside of their designated territory under specific circumstances. If the franchisee agrees, Spray Net will reimburse the franchisee for all actual costs related to providing these services, upon receiving receipts. Spray Net also ensures that, while the franchisee is in compliance with the agreement, it will not establish or allow a third party to operate a business using the Spray Net system and proprietary marks within the franchisee's designated territory.
However, Spray Net retains certain rights, regardless of whether the franchisee offers ancillary services. Spray Net or its affiliates may offer ancillary services within the designated territory, authorize another Spray Net franchisee to do so, or offer franchise rights to a third party to provide such services. The agreement does not grant the franchisee any right to open additional franchised businesses or to sub-license or sub-franchise any rights granted under the agreement. Franchisees are restricted from using the proprietary marks or system for any purpose other than operating the franchised business at the premises and within their designated territory.