Who is responsible for the debts and obligations incurred while operating a Spray Net franchised business?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
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 solely responsible for all debts and obligations incurred while operating the franchised business. Specifically, the franchisee must promptly pay all federal, state, and local taxes, including unemployment, workers' compensation, lodging, and sales taxes, related to the services or products provided under the Franchise Agreement.
This means that as a Spray Net franchisee, you are fully accountable for managing and settling all financial liabilities arising from your business operations. This includes not only taxes but also any other form of indebtedness.
This allocation of responsibility is standard in franchising. Prospective Spray Net franchisees should carefully consider the financial implications of this obligation and ensure they have adequate resources and financial management skills to handle all debts and obligations associated with running the business.