How long do I have to execute the addendum detailing the reduced Spray Net territory?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
If we elect to reduce the size of your Designated Territory(ies) as an alternative to terminating your Franchise Agreement, we will provide you an Addendum that details the size and boundaries of your reduced territory. You must execute this addendum within ten (10) calendar days of your receipt thereof, or your Franchise Agreement will be terminated. Once your Designated Territory is effectively reduced, we may own or operate, or license another to operate, additional Businesses anywhere outside your revised Designated Territory. If we reduce the size of your Designated Territory under the terms of Item 12, you do not have the right to nor will you receive compensation for any value of the forfeited portion of your Designated Territory.
Source: Item 12 — TERRITORY (FDD pages 49–52)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, if Spray Net elects to reduce the size of a franchisee's designated territory as an alternative to terminating the Franchise Agreement, they will provide an addendum detailing the size and boundaries of the reduced territory. The franchisee must execute this addendum within ten calendar days of receipt. Failure to execute the addendum within this timeframe will result in the termination of the Franchise Agreement.
This condition is triggered if a Spray Net franchise fails to generate gross sales amounting to at least 70% of the minimum gross sales required for a given period of operation, as detailed in the chart provided in Item 12. This minimum performance requirement is a critical aspect of maintaining the franchise agreement.
If the territory is reduced, the franchisee will not receive any compensation for the forfeited portion of the designated territory. Spray Net reserves the right to operate or license others to operate businesses outside the revised designated territory once it is effectively reduced. This policy underscores the importance of meeting the minimum performance standards to maintain the original territory size and avoid potential losses.