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What obligations does a Spray Net franchisee have regarding adherence to system standards as outlined in Item 8, and how are these obligations further detailed in Item 9?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

b, Boucherville, Quebec (the | | | "Franchisor"); and (ii) | , a (resident of) (corporation organized in) | | (limited liability | company organized in) with a business address at | | (the "Franchisee" | |

BACKGROUND

  • A. Franchisor and its affiliate/principals, as a result of the expenditure of time, skill, effort, and money, have developed and own a unique system (the "System") related to the development, opening, and ongoing operation of a business that offers and provides various types of painting-related products and services that Franchisor authorizes now or in the future (collectively, the "Approved Products" and "Approved Services", as applicable), including proprietary products and the corresponding services to existing residential homes (each, a "Client"). For purposes of this Agreement, each such business will be referred to herein as a "Spray-Net Business"
  • B. Franchisor's System is comprised of various proprietary and, in some cases, distinguishing elements, including without limitation: proprietary methodology and procedures for the establishment and operation of a Spray-Net Business; standards and specifications for the supplies, inventory and methodology associated with storing, preparing, offering and providing each type of Approved Product and Approved Service; advertising; marketing; standards and specifications for equipment; customize designed chemicals, equipment, and other services; basic standards typically used as the premises for a Spray-Net Business; standards and specifications for the furniture, fixtures and equipment, including computer hardware and system, that must be used in connection with an Franchised Business; established relationships with approved or designated suppliers for certain products and services that must be utilized in connection with an Franchised Business, including certain proprietary and/or branded items; proprietary training programs, courses and training materials; Franchisor's confidential and proprietary operations manual and, at Franchisor's option, other instructional manuals that have been reduced to writing (collectively, the "Manuals"); and standards and specifications for advertising, bookkeeping, sales and other aspects of operating an Franchised Business. The parties agree and acknowledge that Franchisor may change, improve, further develop, or otherwise modify the System from time to time as it deems appropriate in its discretion. Franchisee hereby acknowledges and agrees that: (i) while the System and Franchisor's related materials contain information that, in isolated form, could be construed as being in the public domain, they also contain significant proprietary and confidential information that makes the System unique as a whole; and (ii) the combined methods, information, procedures, and theories that make up the total System or are contained in the relevant manuals that are proprietary and confidential.
  • C. The System and Franchised Businesses are primarily identified by the mark SPRAY-NET, as well as certain other trade names, trademarks, service marks and trade dress, all of which Franchisor may modify, update, supplement or substitute in the future (collectively, the "Proprietary Marks"). The parties agree and acknowledge that Franchisor has established substantial goodwill and business value in its Proprietary Marks, expertise, and System.
  • D. Franchisor is in the business of granting qualified individuals and entities a franchise for the right to independently own and operate a single Franchised Business utilizing the Proprietary Marks and System at a location that Franchisor approves in writing.

©2025 Spray-Net Inc. 2025 Spray-Net Inc. 1

  • E. Franchisee recognizes the benefits derived from being identified with Franchisor, appreciates and acknowledges the distinctive and valuable significance to the public of the System and the Proprietary Marks, and understands and acknowledges the importance of Franchisor's high and uniform standards of quality, appearance, and service to the value of the System.
  • F. Franchisee desires to acquire a non-exclusive franchise for the right to operate a single Franchised Business, and has submitted an application to obtain such a franchise from Franchisor.
  • G. Franchisor is willing to grant Franchisee the right to operate a Franchised Business based on the representations contained in the franchise application and subject to the terms and conditions within this Agreement.

AGREEMENT

NOW THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the parties hereto, intending to be legally bound, do hereby agree as follows:

1. PREAMBLES, ACKNOWLEDGEMENTS AND REPRESENTATIONS OF FRANCHISEE

  • A.

What This Means (2025 FDD)

Based on the 2025 Spray Net Franchise Disclosure Document, franchisees must adhere to the standards and specifications outlined in Spray Net's manuals and other directives. These standards cover various aspects of the business, including methodology, supplies, inventory, equipment, advertising, and bookkeeping. Spray Net may modify the system from time to time, and franchisees are obligated to comply with these changes. The Spray-Net Web Portal may also be used to communicate updates to the manuals, which franchisees must adhere to promptly.

Spray Net franchisees must also get approval for advertising and marketing materials, ensuring they conform to Spray Net's standards. Franchisees can use previously approved materials or submit new materials for approval at least 20 days before use. Spray Net has the right to require franchisees to discontinue using any advertising or marketing material, even those previously approved. Franchisees are also required to use the email address provided by Spray Net exclusively for the franchised business.

Failure to comply with Spray Net's system standards can lead to serious consequences for the franchisee. If a franchisee fails to meet these standards and does not correct the issue within 30 days of receiving notice from Spray Net, it can be considered a breach of the agreement. In cases of default, Spray Net may choose to reduce the size of the franchisee's designated territory or even terminate the franchise agreement. Spray Net also has the right to step in and operate the franchised business until the defaults are cured and the franchisee is in compliance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.