Are Spray Net's officers required to disclose if they own an interest in any approved suppliers?

According to Spray Net's 2025 Franchise Disclosure Document, the company's officers are generally not allowed to own interests in approved suppliers, with one exception. The FDD states that Carmelo Marsala and David Garofano own interests in Groupe Spray-Net, which through its subsidiaries like SN Distribution, will indirectly receive revenue from franchisee purchases.

This means that while most officers are prohibited from having such interests to avoid conflicts of interest, there are exceptions for individuals like Carmelo Marsala and David Garofano who have ownership in entities that benefit from franchisee purchases. SN Distribution is the designated supplier for Proprietary Products and some inventory/supplies necessary to provide the Approved Services and/or operate the Franchised Business.

For a potential Spray Net franchisee, this disclosure is important because it provides transparency into potential financial relationships between the franchisor and its suppliers. It is fairly common in franchising for franchisors or their affiliates to derive revenue from required franchisee purchases, but full disclosure allows franchisees to assess whether these relationships are beneficial or potentially create conflicts. Franchisees should consider whether the required purchases are competitively priced and of good quality, regardless of these relationships. Franchisees should also inquire about the process Spray Net uses to select and approve suppliers to ensure fairness and quality control.