Does Spray Net require business interruption insurance, and if so, what are the requirements for the amounts and terms?

According to Spray Net's 2025 Franchise Disclosure Document, franchisees are required to obtain business interruption insurance. However, the specific amounts and terms of this insurance must be acceptable to Spray Net. This means that while the FDD mandates this type of coverage, Spray Net retains the authority to determine whether the franchisee's chosen policy meets their standards.

Spray Net also has general requirements for insurance carriers. Franchisees must buy insurance from carriers rated A-VIII or better by A.M. Best and Company, Inc., unless Spray Net designates specific carriers. Spray Net may also increase the required coverage amounts or require different or additional insurance coverage to reflect factors like inflation or changes in law.

All insurance policies must name Spray Net and any designated affiliates as additional insureds and provide for thirty days' prior written notice of any material modification or cancellation. Franchisees are responsible for the cost of their insurance premiums, which will depend on the insurance carrier's charges, terms, and the franchisee's insurance and payment histories. Franchisees must also provide timely certificates of all required insurance to Spray Net, including a statement from the insurer that the policy will not be canceled or materially altered without at least thirty days' prior written notice to Spray Net.