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Does Spray Net reserve the right to establish other franchised or company-owned businesses that sell its Proprietary Products under a different trade name or trademark in the future?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

We have not established other franchises or company-owned outlets or another distribution channel selling or leasing similar products or services under a different trademark. Neither we nor either of our affiliates

have established, or presently intend to establish, any other franchised or company-owned businesses that sell our Proprietary Products under a different trade name or trademark, but we reserve the right to do so in the future.

Source: Item 12 — TERRITORY (FDD pages 49–52)

What This Means (2025 FDD)

According to Spray Net's 2025 Franchise Disclosure Document, Spray Net states that while they have not established any other franchises or company-owned outlets selling similar products under a different trademark, they reserve the right to do so in the future. This means that Spray Net retains the option to introduce new brands or trademarks that offer similar products or services as the existing Spray Net franchises.

For a prospective franchisee, this reservation of rights carries both potential risks and opportunities. On one hand, the introduction of a new brand by Spray Net could create internal competition, potentially diluting the market share or brand recognition of existing franchisees. It is important to note, however, that the FDD excerpt does not specify the conditions under which Spray Net might exercise this right or how it would mitigate potential conflicts of interest.

On the other hand, if Spray Net were to introduce a new brand, it could also expand the overall market reach and customer base, potentially benefiting franchisees through increased brand awareness and cross-promotional opportunities. Franchisees should seek clarification from Spray Net regarding their strategic intentions for exercising this right and the potential impact on existing franchise operations. Understanding the conditions under which Spray Net would introduce a competing brand and the support mechanisms in place for franchisees is crucial for making an informed investment decision.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.