Is Spray Net obligated to reimburse a franchisee for any expenditure incurred to promote a modified or substitute mark?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
You must modify or discontinue the use of a trademark if we modify or discontinue it. If this happens, you will be responsible for your tangible costs of compliance (for example, changing exterior and interior signage, advertisements and promotional material, etc.). We are not obligated to reimburse you for any loss of revenue attributable to the modified or discontinued mark or for any expenditure you incur to promote a modified or substitute mark.
Source: Item 13 — TRADEMARKS (FDD pages 52–53)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Spray Net is not obligated to reimburse a franchisee for any expenditure incurred to promote a modified or substitute mark. The FDD states that if Spray Net modifies or discontinues a trademark, the franchisee is responsible for the tangible costs of compliance, such as changing signage, advertisements, and promotional materials.
This means that if Spray Net decides to change its branding or requires franchisees to use a different mark, the franchisee will have to bear the costs of updating their business's appearance and marketing efforts to reflect the new branding. These costs can include new signage, updated marketing materials, and other related expenses.
This lack of reimbursement could pose a financial burden on franchisees, especially if a re-branding occurs frequently or requires significant changes. Prospective franchisees should consider this potential cost when evaluating the Spray Net franchise opportunity and factor it into their financial planning. It is a fairly standard practice in franchising for the franchisee to bear the costs of rebranding efforts.