factual

Does the Spray Net agreement acknowledge that the non-compete clause does not prevent franchisees from earning a living?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

B. After the Term of this Agreement.

    1. For a period of two (2) years after the expiration and nonrenewal, transfer or termination of this Agreement, regardless of the cause, neither Franchisee, its principals, owners and guarantors, nor any member of the immediate family of Franchisee, its principals, owners or guarantors, may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation, be involved with any business that competes in whole or in part with Franchisor by offering or granting licenses or franchises, or establishing joint ventures, for the ownership or operation of a Competing Business. The geographic scope of the covenant c

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

What This Means (2025 FDD)

Based on the 2025 Spray Net Franchise Disclosure Document, there is no explicit statement acknowledging that the non-compete clause does not prevent franchisees from earning a living. The document does outline restrictions on a franchisee's activities after the termination or non-renewal of the agreement. Specifically, for two years, the franchisee (including their principals, owners, guarantors, and immediate family members) cannot be involved with any business that competes with Spray Net by offering or granting licenses or franchises, or establishing joint ventures for a Competing Business. The geographic scope of this covenant is not included in the provided documentation.

This non-compete clause could potentially impact a franchisee's ability to earn a living after leaving the Spray Net system, depending on their skills, experience, and available opportunities. The absence of an explicit acknowledgment that the non-compete does not prevent earning a living raises concerns about the potential limitations placed on former franchisees.

A prospective Spray Net franchisee should carefully consider the implications of the non-compete clause and seek legal advice to understand its enforceability and potential impact on their future career options. It would be prudent to discuss this specific concern with the franchisor to understand their perspective and any potential flexibility in the application of the non-compete agreement. Understanding the geographic scope of the non-compete is also critical to assess its potential impact.

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.