What sections of the Spray Net Franchise Agreement outline the franchisee's obligations for ongoing product/service purchases?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
- J. Private Label Products.
Franchisor may directly, or indirectly through Franchisor's affiliates or designated vendors, develop and provide Franchisee with private label products or other merchandise bearing the Proprietary Marks to be used by Franchisee and/or offered and sold by Franchisee as part of the Approved Services that are provided at the Franchised Business.
Franchisee may be required to purchase these items from Franchisor or any other Approved Supplier that Franchisor designates.
- K. Inspections of the Premises and Approved Vehicles.
Advertising and Marketing
Generally
All advertising and promotion that you use in connection with your Franchised Business must be approved by us and conform to the standards and requirements that we specify. We may make available to you from time to time, at your expense, certain promotional materials, including digital content, social media and other "profile" templates, merchandising materials, point-of-purchase materials, special promotions, and similar advertising and promotional materials. Subject to applicable laws, you must participate in certain promotions and advertising programs that we establish as an integral part of our System, provided these activities do not contravene regulations and laws of appropriate governmental authorities. (Franchise Agreement, Section 9(A)).
If you wish to use any advertising or promotional materials other than those that we have previously approved or designated within the preceding 12 months, then you must submit the materials you wish to use to us for our prior written approval at least 20 days prior to publication. We will use commercially reasonable efforts to notify you of our approval or disapproval of your proposed materials within 15 days of the date we receive the materials from you. If you do not receive our written approval during that time period, however, the proposed materials are deemed disapproved and you may not use such materials. Once approved, you may use the proposed materials for a period of 90 days, unless we: (i) prescribe a different time period for use; or (ii) require you to discontinue using the previously-approved materials in writing. We may require you to discontinue the use of any advertising or marketing material, including materials we previously approved, at any time. (Franchise Agreement, Section 9(B)).
do not set minimum or maximum prices at which you must sell the Approved Products and Approved Services. (Section 6(S), Franchise Agreement).
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 36–37)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, Section 9 and Section 6(S) of the Franchise Agreement, as well as Item 11, address the franchisee's obligations regarding ongoing product and service purchases. Specifically, Section 9(A) states that all advertising and promotion must be approved by Spray Net and conform to their standards. Spray Net may also make promotional materials available to the franchisee at the franchisee's expense. Section 6(S) states that Spray Net does not set minimum or maximum prices at which franchisees must sell approved products and services. Item 11 further discusses advertising and marketing, noting that franchisees must participate in certain promotions and advertising programs established by Spray Net as an integral part of their system, provided these activities do not contravene regulations and laws of appropriate governmental authorities.
Section 9(B) outlines the process for franchisees to propose their own advertising or promotional materials, which must be submitted for written approval at least 20 days prior to publication. Spray Net will then use commercially reasonable efforts to notify the franchisee of their approval or disapproval within 15 days. If no written approval is received within that time, the materials are deemed disapproved. Once approved, the materials can be used for 90 days, unless Spray Net prescribes a different time period or requires the franchisee to discontinue their use in writing. Spray Net retains the right to require franchisees to discontinue the use of any advertising or marketing material, even those previously approved, at any time.
Additionally, Item 23 references private label products, stating that Spray Net may develop and provide franchisees with private label products or other merchandise bearing the Proprietary Marks to be used by the franchisee and/or offered and sold by the franchisee as part of the Approved Services. The franchisee may be required to purchase these items from Spray Net or any other Approved Supplier that Spray Net designates. This indicates that franchisees may have obligations to purchase certain products from Spray Net or approved suppliers to maintain brand consistency and quality standards.