For Spray Net, what actions are franchisees prohibited from doing that would be injurious to the goodwill associated with confidential information and the system?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.2. Subject to and as permitted by applicable law, employ or seek to employ any person who is at that time employed by Franchisor, Franchisor's affiliates or any other System franchisee, or otherwise directly or indirectly induce or seek to induce such person to leave his or her employment thereat; or Divert or attempt to divert business or customers of any Franchisee-owned Franchised Businesses to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, during the term of the Franchise Agreement, franchisees are prohibited from performing any act that is injurious or prejudicial to the goodwill associated with the Proprietary Marks or the Spray Net system. This includes actions that could harm the brand's reputation or the overall value of the franchise system.
Specifically, franchisees are not allowed to divert or attempt to divert business or customers of any franchisee-owned Spray Net businesses to any competitor, whether through direct or indirect inducement. This restriction ensures that franchisees remain committed to the success of the Spray Net system and do not actively work to benefit competing businesses at the expense of the franchise.
This provision is typical in franchise agreements, as franchisors need to protect their brand and system from actions by franchisees that could undermine their value. Prospective Spray Net franchisees should understand that they are obligated to act in a way that supports the brand and avoids any behavior that could be detrimental to its goodwill.