Is Spray Net obligated to reimburse a franchisee for any loss of revenue attributable to a modified or discontinued mark?

According to Spray Net's 2025 Franchise Disclosure Document, if Spray Net modifies or discontinues a trademark, the franchisee is responsible for the tangible costs of compliance, such as changing signage and promotional materials. However, Spray Net is not obligated to reimburse the franchisee for any loss of revenue that may result from the modified or discontinued mark. Additionally, Spray Net will not cover any expenses the franchisee incurs to promote a modified or substitute mark. This means that if Spray Net changes its branding, franchisees must bear the costs of updating their business's appearance and marketing, and they will not be compensated for any potential revenue decline during the transition.

This policy places the financial risk of trademark changes squarely on the franchisee. While it is common for franchisors to control branding and trademarks, it is less common for them to explicitly deny responsibility for revenue losses due to these changes. Many franchise agreements address brand evolution, but some may offer more support or financial assistance during rebranding initiatives.

Prospective Spray Net franchisees should carefully consider this aspect of the franchise agreement. It would be prudent to inquire about the frequency of brand updates or changes Spray Net has made in the past and the potential financial impact on franchisees. Understanding Spray Net's history and future plans for its trademarks can help a franchisee better prepare for potential rebranding costs and revenue disruptions.