Can Spray Net update or modify the list of approved suppliers?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
u must obtain our prior written approval as described more fully in this Item.
Approved Suppliers
We have the right to require you to purchase or lease any items or services necessary to operate your Franchised Business, including but not limited to equipment, fixtures, inventory, and paper goods, from a supplier that we approve or designate (each, an "Approved Supplier"), which may include us or our affiliate(s). We will provide you with a list of our Approved Suppliers in writing as part of our Manual or otherwise in writing, and we may update or modify this list as we deem appropriate.
As of the Issuance Date, we have Approved Suppliers for the following items: (i) the business management software and certain other required software that you must license and use in connection with your Franchised Business (collectively, the "Required Software"); (ii) equipment (including Mobile Services Unit) that we expect, and our standard offering assumes, you will lease from a third-party lessor we approve or authorize; (iii) the Marketing Kit, Production Supplies Kit, and Sales Kit; (iv) supplies such as masking paper, tape, and caulking; (v) vehicle signage and related installation; and (vi) all or some of the marketing, advertising and promotional materials and services on which you must expend your Local Advertising Requirement and Initial Marketing Investment; (vii) home show booth and spray booth; (viii) call center and sales center; (xiv) accounting software (QuickBooks); (xv) bookkeeping services (Journey); and (xvi) if and once applicable, certain equipment, hardware and/or operating supplies necessary to provide one (1) or more of the Ancillary Services we approve 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.
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, Spray Net has the authority to modify the list of approved suppliers. Spray Net will provide a list of approved suppliers in writing as part of their manual or otherwise in writing. This list may include Spray Net or its affiliates.
Spray Net franchisees are required to purchase or lease items and services from approved or designated suppliers. These items include business management software, equipment (including Mobile Services Unit), the Marketing Kit, Production Supplies Kit, Sales Kit, supplies such as masking paper, tape, and caulking, vehicle signage and related installation, marketing, advertising and promotional materials and services, home show booth and spray booth, call center and sales center, accounting software (QuickBooks), bookkeeping services (Journey), and certain equipment, hardware and/or operating supplies necessary to provide one (1) or more of the Ancillary Services. 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. Spray Net is the designated supplier for the Marketing Kit, Production Supplies Kit, and Sales Kit, System-associated business management software, and certain digital and other marketing management services.
If a Spray Net franchisee wishes to use a non-approved product/service or an alternative supplier, they must obtain written approval from Spray Net. Spray Net may request samples or information to assess whether the goods, equipment, supplies, or supplier meet their standards. They will evaluate the supplier's production and delivery capability, business reputation, and financial condition. Spray Net may also inspect the supplier's facilities and test its products, with the franchisee responsible for reimbursing the associated costs. Spray Net may re-inspect and/or revoke their approval of a supplier or item at any time and for any reason to protect the best interests and goodwill of their System and Proprietary Marks. The revocation of a previously approved product or alternative supplier is effective immediately when the franchisee receives written notice from Spray Net of revocation, and the franchisee may not place any new orders for the revoked product, or with the revoked supplier.