How many additional consecutive terms can a Spray Net franchisee request to renew for?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
t. Moreover, Franchisor will provide Franchisee with a reasonable amount of time to comply with any change or modification to the System once Franchisee has been notified of such change/modification in writing (via the Manuals or otherwise).
3. TERM AND RENEWAL
- A. Term. Unless previously terminated under this Agreement, the term of this Agreement shall be for a period of ten (10) years ("Initial Term") commencing as of the Effective Date.
- B. Renewal. Franchisee may submit a request to renew this Agreement for up to one (1) additional, consecutive term of ten (10) years, and must provide the request to renew no less than six (6) months and no more than twelve (12) months prior to the end of the thencurrent term. Failure to provide such notice to Franchisor will be deemed an indication that Franchisee does not wish to renew the franchise relationship. Franchisor shall not unreasonably withhold its approval of such requests for renewal, provided Franchisee complies with the following conditions:
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- Franchisee must not have: (i) any uncured material defaults under this Agreement (including any monetary defaults) or any other agreement between Franchisee and Franchisor or the landlord of the Premises, either at time of Franchisee's renewal request or at the time of renewal; and (ii) received more than three (3) separate, written notices of material default from Franchisor with respect to this Agreement in the 12-month period preceding the renewal request date or renewal date.
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- Franchisee must execute Franchisor's then-current form of franchise agreement, which may contain materially different terms and conditions from those contained in this Agreement, within thirty (30) days of the date Franchisee is provided with Franchisor's then-current form of franchise agreement.
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- Franchisee pays Franchisor a renewal fee amounting to Ten Thousand Dollars ($10,000) prior to Franchisor entering into the renewal form of franchis
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Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a franchisee can request to renew their franchise agreement for one additional term. This additional term is for ten years and must be requested no less than six months and no more than twelve months before the current term expires. If the franchisee fails to provide notice within this timeframe, it will be considered that they do not wish to renew the franchise agreement.
However, Spray Net's approval of the renewal is not guaranteed. The franchisee must meet certain conditions to be eligible for renewal. These conditions include not having any uncured material defaults under the franchise agreement or any other agreements with Spray Net or the landlord. Additionally, the franchisee must not have received more than three separate written notices of material default from Spray Net within the 12-month period preceding the renewal request or renewal date.
Furthermore, to renew the franchise agreement, the franchisee must execute Spray Net's then-current form of franchise agreement, which may contain significantly different terms and conditions from the original agreement. The franchisee has 30 days to execute this new agreement once it is provided by Spray Net. The franchisee must also pay a renewal fee of $10,000 before entering into the renewal agreement. However, the franchisee will not be required to pay an additional initial franchise fee upon renewal.
These renewal terms are fairly standard in the franchise industry, as franchisors often update their franchise agreements and impose conditions for renewal to ensure franchisees are in good standing and compliant with current standards. Prospective Spray Net franchisees should carefully consider these renewal conditions and the potential for changes in the franchise agreement when evaluating the long-term prospects of the franchise.