What specific auto insurance coverages are required for Franchisee-owned vehicles used in connection with operating the Spray Net Franchised Business?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
lacement value of the premises of the Franchised Business and its furniture, fixtures, and equipment;
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- Auto insurance for any Approved Vehicle used in connection with operating the Franchised Business, including Franchisee-owned vehicles and non-Franchisee-owned vehicles, which will include liability coverage in the minimum amount of Two Million Dollars ($2,000,000) per year, as well as commercial auto insurance for Franchisee-owned vehicles, which will include collision and comprehensive coverage as well as liability coverage in the minimum amount of $250,000 per person a
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, franchisees must maintain specific auto insurance coverage for vehicles used in their business operations. For franchisee-owned vehicles, this includes commercial auto insurance with both collision and comprehensive coverage.
Additionally, the franchisee must maintain liability coverage of at least $250,000 per person and $500,000 per accident per year. However, if state regulations mandate higher minimums, the franchisee must adhere to the state's requirements.
Spray Net also requires auto insurance for any vehicle used in connection with operating the franchised business, including franchisee and non-franchisee owned vehicles, which will include liability coverage in the minimum amount of $2,000,000 per year.