Who can provide the touch-up work that triggers the reimbursement obligation for a Spray Net franchisee?

According to Spray Net's 2025 Franchise Disclosure Document, a franchisee may be required to reimburse certain parties for touch-up work provided to the franchisee's customers after the franchise agreement terminates or expires. Specifically, if Spray Net, an affiliate of Spray Net, or another Spray Net franchisee provides touch-up work for customers to whom the franchisee provided approved services, the franchisee is obligated to cover the actual costs of that touch-up work. This reimbursement is triggered upon demand from Spray Net, its affiliate, or the other franchisee who performed the touch-up.

This obligation arises only after the franchise agreement has ended, meaning the franchisee is no longer operating under the Spray Net brand. The touch-up work must be for customers who were originally served by the franchisee during the term of their agreement. The reimbursement covers the actual costs incurred in providing the touch-up, not a marked-up or inflated price.

For a prospective Spray Net franchisee, this clause represents a potential post-termination financial responsibility. It is important to understand the scope of 'actual costs' and how these are documented and verified. A franchisee should also consider the likelihood of such touch-up work being required after the agreement ends, and the potential financial impact this could have. It is advisable to discuss this provision with Spray Net during the due diligence process to gain clarity on its practical application and potential financial implications.