Under the Spray Net franchise agreement, what right does the agreement grant to the franchisee?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
ial 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.
C. Designated Territory.
-
- Franchisee shall only have the right to operate the Franchised Business and offer/provide the Approved Services and, if applicable, Ancillary Services, in connection with homes that are located within the designated territory as stated in Section 3 of the Data Sheet (the "Designated Territory"). If Franchisee is granted the right to operate the Franchised Business in more than one Designated Territory, the number of Designated Territories shall be set forth in Section 3 of the Data Sheet. Franchisor may ask Franchisee to provide the Approved Services and/or Ancillary Services outside of the Designated Territory under certain circumstances. If Franchisee agrees to provide such Approved Services and/or Ancillary Services outside of the Designated Territory upon Franchisor's request, Franchisor shall reimburse Franchisee for all actual costs related to providing such Approved Services and/or Ancillary Services upon receiving receipts for such costs from Franchisee.
-
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, a franchisee has the right to operate the franchised business and offer approved services within their designated territory. The specifics of this territory are outlined in Section 3 of the Data Sheet. If a franchisee is approved to operate in multiple territories, the number of territories will be listed in the same section of the Data Sheet.
Spray Net may request that a franchisee provide services outside of their designated territory under certain circumstances. If the franchisee agrees to this request, Spray Net will reimburse the franchisee for all actual costs related to providing these services, provided that the franchisee submits receipts for these costs.
However, the agreement does not grant the franchisee the right to open additional franchised businesses or to sub-license or sub-franchise any of the rights granted to them. Spray Net retains the sole discretion to grant a franchisee the right to open additional franchised businesses, and each new business would be governed by a separate franchise agreement. Spray Net also reserves the right to offer ancillary services within the franchisee's designated territory, potentially impacting the franchisee's business, without any remuneration to the franchisee.