Is SN Distribution a designated supplier for any items for Spray Net franchisees?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
e or otherwise require you to provide as described more fully in Item 16 of this Disclosure Document.
As of the Issuance Date, be advised that: (i) SN Distribution is the designated supplier for Proprietary Products and some inventory/supplies necessary to provide the Approved Services and/or operate the Franchised Business; and (ii) we are the designated supplier for (a) the Marketing Kit, Production Supplies Kit, and Sales Kit, (b) our System-associated business management software, and (c) certain digital and other marketing management services on which you must expend a portion of your Initial Marketing Investment and Local Advertising Requirement.
Except as provided above, neither we nor our affiliates are the designated or Approved Supplier for any item or service you are required to purchase or lease in connection with the establishment and/or ongoing operation of your Franchised Business. Carmelo Marsala and David Garofano own interests in Groupe Spray-Net and, through its subsidiaries, including SN Distribution, will indirectly derive revenue from required franchisee purchases. Except as stated above, none of our officers owns an interest in any of our Approved Suppliers.
Non-Approved Product/Service and Alternative Supplier Approval
We may, but are not obligated to, grant your request to: (i) offer any products or services in connection with your Franchised Business other than the Approved Services (which includes the Proprietary Products);
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–36)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, SN Distribution is a designated supplier for certain products and supplies. Specifically, SN Distribution is the designated supplier for Proprietary Products and some inventory/supplies necessary to provide the Approved Services and/or operate the Franchised Business. This means that franchisees are required to purchase these items from SN Distribution. Carmelo Marsala and David Garofano own interests in Groupe Spray-Net and, through its subsidiaries, including SN Distribution, will indirectly derive revenue from required franchisee purchases.
Spray Net also designates itself as the supplier for the Marketing Kit, Production Supplies Kit, Sales Kit, System-associated business management software, and certain digital and other marketing management services. Franchisees must spend a portion of their Initial Marketing Investment and Local Advertising Requirement on these marketing management services provided by Spray Net.
In 2024, SN Distribution's revenue from sales to U.S. Spray Net franchisees totaled $1,172,603. Spray Net estimates that costs of purchases from designated or approved suppliers, or according to their standards and specifications, may range from 90% to 95% of your total purchases in connection with the establishment of your Franchised Business, and between 35% and 45% of your ongoing expenses. These required purchases and designated suppliers are part of Spray Net's efforts to maintain uniformity and quality control across all franchise locations. However, Spray Net may receive revenue, rebates, commission or other material consideration from franchisee purchases.