Who reviews and grants/rejects potential locations for each Spray Net Franchised Business within the Site Selection Area?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
If the parties have not agreed on a Premises as of the date this Agreement is executed, Franchisor will designate a general marketing area (the "Site Selection Area") on the data sheet attached to this Agreement as Exhibit A (the "Data Sheet") where Franchisee must locate and secure the Premises as detailed more fully in Section 6(A) of this Agreement. Franchisee acknowledges and agrees that: (i) it does not have any territorial rights within the Site Selection Area; (ii) Franchisor may permit other new franchisees to search for the location of their Franchised Business within the same Site Selection Area that is assigned to
Franchisee under this Agreement if Franchisor determines in its discretion that the Site Selection Area is large enough to contain additional franchises; and (iii) potential locations for each Franchised Business, and resulting Designated Territories (as defined below), within the Site Selection Area will be reviewed and rejected/granted on a first-to-propose basis.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the franchisor reviews and either grants or rejects potential locations for each franchised business within the Site Selection Area. These decisions are made on a first-to-propose basis.
This means that as a prospective Spray Net franchisee, you will need to identify a location within the designated Site Selection Area. However, simply finding a location does not guarantee approval. Spray Net retains the right to evaluate the proposed location and decide whether or not to grant approval.
The FDD also states that Spray Net may allow other new franchisees to search for locations within the same Site Selection Area if they determine it is large enough to support additional franchises. This introduces a competitive element, as the first franchisee to propose a suitable location is more likely to have it approved. Therefore, prompt action and thorough preparation are essential when searching for a location.