Does Spray Net need to approve a Designated Manager?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
r training programs that we designate provided by third parties. All training must be completed prior to opening the Franchised Business.
Under certain conditions and with our prior approval, we may permit you to appoint a Designated Manager to handle day-to-day management of the Franchised Business on-site at the premises. Your Designated Manager must complete all components of our initial training, but we do not require that your Designated Manager immediately have an ownership interest in a corporate or partnership franchisee. If you engage a Designated Manager to manage the day-to-day operations of the Franchised Business, your Designated Manager must, by one (1) year after the Franchised Business opens for business, either (i) own ten percent (10%) of the equity interest in Franchisee and/or the Franchised Business or (ii) be granted a compensation package that grants the Designated Manager ten percent (10%) of the equity interest in Franchisee and/or the Franchised Business within a reasonable period of time. The Designated Manager will need to be approved by us and will need to sign the form of Confidentiality and Non-Compete Agreement in a form substantially similar to the form attached to your Franchise Agreement. Any Designated Manager, including any replacement manager, must attend and complete all required training before assuming any management responsibility in connection with your Franchised Business.
If you or your Designated Manager are not physically present on-site at a given customer job, then there must be at least one (1) SN Specialist present that can provide the kind of Approved Services at issue, including any Approved Services involving any Proprietary Products.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 55)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, if a franchisee chooses to appoint a Designated Manager to handle the day-to-day operations of the Franchised Business, Spray Net's prior approval is required. The Designated Manager must complete all components of Spray Net's initial training program. However, the Designated Manager is not immediately required to have an ownership interest in a corporate or partnership franchisee.
Within one year after the Franchised Business opens, the Designated Manager must either own at least ten percent of the equity interest in the Franchisee or the Franchised Business, or be granted a compensation package that grants them ten percent of the equity interest within a reasonable period. The Designated Manager must also sign a Confidentiality and Non-Compete Agreement similar to the one attached to the Franchise Agreement. Furthermore, any Designated Manager, including any replacement manager, must attend and complete all required training before assuming any management responsibilities.
Spray Net emphasizes that they are not the employer of the franchisee or their personnel, and the franchisee has the right to control all decisions related to recruiting, hiring, or firing any personnel, including managers. The FDD clarifies that nothing in the document or any agreement will create any type of employer or joint employer relationship between Spray Net and the franchisee or their personnel.