Does Spray Net require the franchisee to personally participate in the direct management operation of the Franchised Business?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
- V. Personal Participation by Franchisee.
Franchisee must personally participate in the direct management operation of the Franchised Business on a full-time basis, unless Franchisee engages a Designated Manager of whom Franchisor approves in writing to manage the day-to-day operations of the Franchised Business when Franchisee is not present.
If Franchisee designates a manager at any time, that manager must successfully complete the Initial Training Program prior to assuming any management responsibilities in connection with the Franchised Business.
Regardless, Franchisee is solely responsible for all aspects of the operation of the Franchised Business and ensuring that all the terms, conditions, and requirements contained in this Agreement and in the Manuals are met and kept.
If Franchisee engages a Designated Manager to manage the day-to-day operations of the Franchised Business, such Designated Manager must, by one (1) year after the Franchised Business opens for business, either (i) own ten percent (10%) of the equity interest in Franchisee and/or the Franchised Business or (ii) be granted a compensation package that grants the Designated Manager ten percent (10%) of the equity interest in Franchisee and/or the Franchised Business within a reasonable period of time.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees must personally participate in the direct management of their franchised business on a full-time basis. However, there is an exception to this requirement. A franchisee can engage a Designated Manager to handle the day-to-day operations if they cannot be present, provided Spray Net approves this manager in writing.
If a franchisee chooses to designate a manager, that manager must successfully complete the Initial Training Program before taking on any management responsibilities. This ensures that the manager is properly trained and capable of running the Spray Net business according to the franchisor's standards. Despite having a Designated Manager, the franchisee remains ultimately responsible for all aspects of the business. This includes ensuring that all terms, conditions, and requirements outlined in the Franchise Agreement and the Manuals are fully met.
Furthermore, Spray Net requires that within one year after the business opens, the Designated Manager must either own at least 10% of the equity interest in the franchise or receive a compensation package that grants them 10% equity interest within a reasonable timeframe. This equity stake incentivizes the manager and aligns their interests with the success of the Spray Net franchise. This requirement ensures that the Designated Manager has a vested interest in the success of the Spray Net business, aligning their goals with those of the franchisee.