factual

What is the 'System' that Spray Net franchisees utilize?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

THIS FRANCHISE AGREEMENT (the "Agreement") is made and entered into on this day of
, 20 ("Effective Date,") by and between: (i) Spray-Net Inc., a Delaware
corporation, with its principal business address at 1490 De Coulomb, Boucherville, Quebec (the
"Franchisor"); and (ii) , a (resident of) (corporation organized in)
(limited liability company organized in) with a business address at
(the "Franchisee"

BACKGROUND

  • A. Franchisor and its affiliate/principals, as a result of the expenditure of time, skill, effort, and money, have developed and own a unique system (the "System") related to the development, opening, and ongoing operation of a business that offers and provides various types of painting-related products and services that Franchisor authorizes now or in the future (collectively, the "Approved Products" and "Approved Services", as applicable), including proprietary products and the corresponding services to existing residential homes (each, a "Client"). For purposes of this Agreement, each such business will be referred to herein as a "Spray-Net Business"
  • B. Franchisor's System is comprised of various proprietary and, in some cases, distinguishing elements, including without limitation: proprietary methodology and procedures for the establishment and operation of a Spray-Net Business; standards and specifications for the supplies, inventory and methodology associated with storing, preparing, offering and providing each type of Approved Product and Approved Service; advertising; marketing; standards and specifications for equipment; customize designed chemicals, equipment, and other services; basic standards typically used as the premises for a Spray-Net Business; standards and specifications for the furniture, fixtures and equipment, including computer hardware and system, that must be used in connection with an Franchised Business; established relationships with approved or designated suppliers for certain products and services that must be utilized in connection with an Franchised Business, including certain proprietary and/or branded items; proprietary training programs, courses and training materials; Franchisor's confidential and proprietary operations manual and, at Franchisor's option, other instructional manuals that have been reduced to writing (collectively, the "Manuals"); and standards and specifications for advertising, bookkeeping, sales and other aspects of operating an Franchised Business. The parties agree and acknowledge that Franchisor may change, improve, further develop, or otherwise modify the System from time to time as it deems appropriate in its discretion. Franchisee hereby acknowledges and agrees that: (i) while the System and Franchisor's related materials contain information that, in isolated form, could be construed as being in the public domain, they also contain significant proprietary and confidential information that makes the System unique as a whole; and (ii) the combined methods, information, procedures, and theories that make up the total System or are contained in the relevant manuals that are proprietary and confidential.
  • C.

Source: Item 23 — RECEIPTS (FDD pages 75–219)

What This Means (2025 FDD)

According to Spray Net's 2025 Franchise Disclosure Document, the 'System' encompasses the unique methods and procedures for operating a Spray-Net Business. This includes proprietary methodologies, standards, and specifications for supplies, inventory, and the processes for storing, preparing, offering, and providing approved products and services. The Spray Net system also includes advertising and marketing strategies, equipment standards, custom-designed chemicals, and basic standards for the business premises.

Furthermore, the Spray Net system incorporates standards for furniture, fixtures, computer hardware and systems, relationships with approved suppliers, and proprietary training programs and materials. These are detailed in the confidential operations manual and other instructional materials. Spray Net retains the right to modify the System as it sees fit.

Spray Net franchisees must use the Proprietary Marks and System solely for promoting and operating the franchised business within their designated territory. The Spray-Network software is a key component, with franchisees paying monthly fixed fees and a weekly tech royalty based on 0.0025 of the total job value produced the previous week. Spray Net can adjust these fees and may charge additional fees for major upgrades or third-party integrations. Franchisees are responsible for complying with privacy policies and ensuring all legal contract requirements are updated within the System settings to reflect their local territory. Franchisees are also responsible for verifying the price and paint volume calculations within the Spray-Network software.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.