What monetary obligations must be satisfied before Spray Net approves a franchise transfer?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| names (if permitted) used in connection with the Franchised Business (as well as all related listings) to us or our designee. | |||
| j. | Assignment of contract by Franchisor | Section 13(G) | No restriction on our right to assign. |
| k. | "Transfer" by | Section 13(A) | Includes any transfer of Franchise Agreement, assets of the |
| Franchisor – | and Section | Franchised Business, or ownership change in you (as the | |
| defined | 13(C) | Franchisee). | |
| l. | Franchisor's approval of transfer by Franchisee | Section 13(A) | We must approve all transfers, but we will not unreasonably withhold our approval if you meet our conditions. |
| m. | Conditions for Franchisor's approval of transfer | Section 13(E) | We have the right to impose the following conditions on any transfer by you: (i) all of your accrued monetary obligations under the Franchise Agreement have been satisfied; (ii) you cure all existing defaults under the Franchise Agreement; (iii) you and your principals must execute a general release; (iv) you or the transferee provides us with a copy of the executed purchase agreement; (v) the transferee must meet our then-current qualifications and criteria for a new franchisee; (vi) the transferee executes our then-current franchise agreement; (vii) you or the transferee pays us a transfer fee of $10,000; (viii) the transferee satisfactorily completes our Initial Training Program; (ix) you must comply with all post-termination provisions of the Franchise Agreement; (x) the transferee must obtain all permits and licenses required for the continued operation of the Franchised Business; (xi) all applicable lessors consent to the proposed transfer; (xii) if applicable, you reimburse us for any |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–62)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must first satisfy all accrued monetary obligations under the Franchise Agreement. This means clearing any outstanding debts, fees, or other financial commitments owed to Spray Net before the transfer can proceed.
In addition to satisfying all monetary obligations, the franchisee must also cure all existing defaults under the Franchise Agreement. This encompasses rectifying any breaches of contract, operational deficiencies, or failures to meet Spray Net's standards. Both of these conditions must be met to gain approval for the transfer.
Furthermore, either the franchisee or the transferee is responsible for paying Spray Net a transfer fee of $10,000. This fee is a standard part of the transfer process and must be paid before the transfer is finalized. Prospective franchisees should factor this fee into their financial planning when considering a franchise transfer.
In summary, a Spray Net franchisee must ensure all financial obligations are met, all defaults are cured, and the $10,000 transfer fee is paid to gain approval for a franchise transfer. These requirements are in place to protect the integrity of the Spray Net brand and ensure the continued success of the franchise system.