Who is responsible for the costs incurred by Spray Net due to a violation of the agreement?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
uch as fraud or unfair and deceptive trade practices.
- K. Reimbursement for Touch-up Work. If, after the termination or expiration of this Agreement, Franchisor, an affiliate of Franchisor, or another Spray-Net franchisee provides touch-up work for customers to whom Franchisee provided Approved Services, Franchisee shall reimburse Franchisor, Franchisor's affiliate(s), or another Spray-Net franchisee the actual costs of providing such touch-up work upon demand.
17. TAXES AND INDEBTEDNESS
- A. Taxes. Franchisee must promptly pay when due any and all federal, state, and local taxes, including without limitation, unemployment, workers' compensation, lodging, and sales taxes which are levied or assessed with respect to any services or products furnished, used, or licensed under this Agreement and all accounts or other indebtedness of every kind incurred by Franchisee in the operation of the Franchised Business.
- B. Debts and Obligations. Franchisee hereby expressly covenants and agrees to accept full and sole responsibility for any and all debts and obligations incurred in the operation of the Franchised Business.
18. WRITTEN APPROVALS; WAIVERS; FORMS OF AGREEMENT; AMENDMENT
- A. Franchisor's Approval. Whenever this Agreement requires or Franchisee desires to obtain Franchisor's approval, Franchisee shall make a timely written request. Unless a different period is specified in this Agreement, Franchisor shall respond with its approval or disapproval within fifteen (15) days of receipt of such request. If Franchisor has not specifically approved a request within such fifteen (15) day period, such failure to respond shall be deemed as a disapproval of any such request.
- B. No Waiver. No failure of Franchisor to exercise any power reserved to it by this Agreement and no custom or practice of the parties at variance with the terms hereof shall constitute a waiver of Franchisor's right to demand exact compliance with any of the terms herein. No waiver or approval by Franchisor of any particular breach or default by Franchisee; no delay, forbearance, or omission by Franchisor to act or give notice of default or to exercise any power or right arising by reason of such default hereunder; and no acceptance by Franchisor of any payments due hereunder shall be considered a waiver or approval by Franchisor of any preceding or subsequent breach or default by Franchisee of any term, covenant, or condition of this Agreement.
- C. Terms of Other Franchise Agreements. No warranty or representation is made by the Franchisor that all franchise agreements heretofore or hereafter issued by Franchisor in connection with a Franchised Business do or will contain terms substantially similar to those contained in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the franchisee is responsible for specific costs and obligations related to the operation of their franchise and compliance with the franchise agreement. The franchisee must pay all federal, state, and local taxes when due, including unemployment, workers' compensation, lodging, and sales taxes related to the services or products they furnish, use, or license. Additionally, the franchisee is solely responsible for all debts and obligations incurred while operating the Spray Net franchised business.
If Spray Net, its affiliates, or another franchisee provides touch-up work for customers that the franchisee previously served after the agreement terminates or expires, the franchisee must reimburse the party performing the touch-up work for the actual costs incurred. This means that if a franchisee's work is substandard and requires correction after they are no longer part of the Spray Net system, they will be financially responsible for those corrections.
Furthermore, the franchisee is responsible for complying with privacy policies at the city, state, province, and country levels. They must also inform Spray Net of any specific conditions and laws related to third-party privacy and confidentiality regulations regarding consumer data protection. The franchisee is also responsible for updating all other legal contract requirements, terms, and conditions within the system settings to align with their local territory, including warranty terms, taxes, business license information, contact information, and liability insurance details.
Finally, the franchisee is responsible for completing all training related to the Spray-Network software and applying that training when operating the software. They are also responsible for training and supporting their own employees on the Spray-Network. The franchisee retains responsibility for defects associated with misuse of the platform if they or their employees do not follow recommended steps or deviate from appropriate methods for submitting bugs or requesting support. These stipulations highlight the franchisee's broad responsibility for financial and legal compliance, quality of service, and proper use of the Spray Net systems.