What activities are prohibited under the post-term restrictive covenant for managers leaving a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
7.1 Post-Term Restrictive Covenant for Designated Manager of Franchised Business or Manager/Officers/Directors of Franchisee.
In the event I am a manager of the Franchised Business, or an officer/director/manager/partner of Franchisee that has not already executed a Personal Guaranty agreeing to be bound by the terms of the Franchise Agreement, then I further agree that I will not be involved in a Competing Business of any kind for a period of two years after the expiration or termination of my employment with Franchisee for any reason: (i) at or within a 60 mile radius of the Premises; or (ii) within a 60-mile radius of any other Franchised Business that exists at the time my employment with Franchisee ceases through the date of my involvement with the Competing Business.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a post-term restrictive covenant applies to designated managers of the franchised business or managers/officers/directors of the franchisee who have not already executed a personal guaranty. This covenant restricts their involvement in a Competing Business for two years after their employment with the franchisee ends.
The restrictions apply (i) at or within a 60 mile radius of the Premises; or (ii) within a 60-mile radius of any other Franchised Business that exists at the time their employment with Franchisee ceases through the date of their involvement with the Competing Business.
This means that for two years after leaving their position, these managers cannot own, operate, be employed by, or have any interest in a competing painting service business within a 60-mile radius of the Spray Net franchise they managed or any other existing Spray Net franchise. This restriction aims to protect Spray Net's market and confidential information by preventing former managers from using their knowledge and experience to benefit a competitor in the same geographic area.