Does Spray Net require the franchisee to operate the franchise independently?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
t brand or otherwise to offer and/or provide such Ancillary Services within the Designated Territory. If Franchisor exercises any of its rights in this Section, there shall be no remuneration due to Franchisee.
- D. Rights Not Granted. Franchisee acknowledges and agrees that this Agreement does not grant Franchisee any right or option to open any additional Franchised Businesses nor does this Agreement provide Franchisee with any right to sub-license or sub-franchise any of the rights granted hereunder. Franchisee may not use the Proprietary Marks or System for any purpose other than promoting and operating the Franchised Business at the Premises and within the Designated Territory. Franchisor will have sole discretion as to whether it decides to grant Franchisee the right to open any additional Franchised Businesses, each of which will be governed by a separate form of Franchisor's then-current franchise agreement.
- E. Reservation of Rights. Notwithstanding anything contained in this Agreement, Franchisor and its affiliates hereby reserve the exclusive right to: (i) own and operate franchised businesses at any location(s) outside of the Designated Territory under the Proprietary Marks, or to license others the right to own and operate Spray-Net businesses at any location(s) outside of the Designated Territory under the Proprietary Marks and System; (ii) the right to own and operate businesses under different marks at any location(s) inside
or outside of the Designated Territory, or license to others the right to own and operate such businesses, under different marks at any location(s) inside or outside of the Designated Territory (such businesses will not primarily provide painting products and services); (iii) use the Proprietary Marks and System in connection with services and products, promotional and marketing efforts, or related items, or in alternative channels of distribution, including the sale of any Spray-Net products in wholesale and retail stores, via the Internet, and through mail order catalog, without regard to location;
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees are granted a designated territory in which to operate their franchised business. However, Spray Net retains significant control over various aspects of the business. Franchisees are required to adhere to specific guidelines and requirements set by Spray Net, impacting their operational independence.
Spray Net reserves the right to direct or approve products and services franchisees must use, and can mandate the use of approved suppliers, even collecting local advertising fees to pay these suppliers directly. Spray Net also dictates specific requirements for phone lines and directory listings, and can intervene to manage online listings and advertisements if a franchisee does not comply with their requests. These stipulations limit a franchisee's autonomy in choosing vendors and marketing strategies.
Furthermore, the franchise agreement explicitly states that franchisees cannot sub-license or sub-franchise any rights. Spray Net also retains the right to operate or license others to operate businesses under different marks, or sell Spray-Net products through various channels, regardless of the franchisee's designated territory. Franchisees are also responsible for complying with privacy policies and updating legal contract requirements within the Spray-Network software, but Spray-Net ultimately determines the priority and timeline for software development and issue resolution, potentially impacting a franchisee's ability to customize the system to their specific needs.
While franchisees are responsible for verifying pricing and paint volume calculations within the Spray-Network, Spray Net is not liable for inaccuracies or operational issues arising from the software. Overall, while franchisees manage day-to-day operations within their territory, Spray Net maintains considerable control over key business functions, limiting the franchisee's independent decision-making power.