What remedy is the former franchisee seeking in the arbitration proceeding against Spray Net?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
9202137 Canada Inc. and its principal Patricia Joyce v. Spray-Net Canada, Inc. and Carmelo Marsala (collectively, "SN Canada"), Arbitration Proceeding. In or around February 2019, a former franchisee of SN Canada commenced this proceeding alleging that the Franchise Disclosure Document disclosed by SN Canada was materially deficient seeking rescission and corresponding damages. SN Canada has filed its response to the former franchisee's notice of arbitration, and the parties are currently waiting for an arbitrator to be assigned. SN Canada intends to continue vigorously defending against this proceeding on the grounds that the former franchisee's claims are without merit.
Source: Item 3 — LITIGATION (FDD page 13)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a former franchisee of SN Canada (Spray-Net Canada) initiated an arbitration proceeding in February 2019. The franchisee alleges that the Franchise Disclosure Document provided by SN Canada was materially deficient.
The former franchisee is seeking rescission, which means they want to cancel the franchise agreement and be restored to the position they were in before signing the agreement. In addition to rescission, the franchisee is also seeking corresponding damages, which would cover any losses they incurred as a result of the alleged deficiencies in the disclosure document.
Spray Net Canada has responded to the notice of arbitration and is waiting for an arbitrator to be assigned. SN Canada intends to vigorously defend against the proceeding, asserting that the former franchisee's claims lack merit. Prospective franchisees should monitor the outcome of this proceeding as it could reveal important information about Spray Net's franchise disclosure practices.