factual

After the Spray Net agreement expires or is terminated, is a franchisee allowed to solicit any of Spray Net's other employees to discontinue employment?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

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EXHIBIT G TO THE FRANCHISE AGREEMENT

SPRAY-NETWORK contract provisions for terms of use, rights, and conditions.

License Grant.

    1. Scope of Use: The Licensed User is hereby authorized as the Franchise Partner role to use the software The Spray-Network to add and remove users within the software under their 'franchise', manage the administration and onboarding of these users to the platform.
    1. The Spray-Network is intended to be used on a Chrome Browser, Desktop and/or iPad. The list view and production sheet modules are also available on Mobile devices.
      1. The Quotation module for the scope of providing quotes is to be completed on Chrome on an iPad with mobile data. It is not intended to be utilized with a mobile hot spot.

Permitted Users: The users added to the Spray-Network under a franchise location are limited to employees or business partners of the said Franchise location.

Duration: The use and rights of the Spray-Network are limited to the following terms and conditions:

    1. The Franchise Owner must be considered in good standing and not in violation of a breach of contract, payment, or termination of the franchise agreement.
    1. In the event of a closure or termination, the franchisor will determine the appropriate steps and limits with rights of access to the Spray-Network.
    1. In the event an employee of the franchise Owner is no longer an active owner. The Franchise Owner must take the appropriate steps to remove the user from the Spray-Network, fully revoking access to the platform.
    1. The Franchise Owner must pay for the Software license fees to maintain access to the Spray-Network, as outlined in the Franchise Agreement.

Restrictions on Use:

  1. The Spray-Network is the proprietary software of Spray-Net, and may not be sold, redistributed, reverse engineered or used in any other manner than intended for use with the franchise business model.

Intellectual Property Rights: The license rights to use the software is limited to the rights to use the software for the duration of the terms of the franchise agreement.

Transfers: In the event of a merger or a business acquisition of a franchise location, the license to use the franchise in the Spray-Network with the customer information may be transferred to the new owner.

Support and Maintenance: The users of the platform may reach out for support or to flag potential issues through the ticketed chatbot embedded into the Spray-Network menu. Periodically, updates, system maintenance and new features will be deployed. At the time of an update, users will be notified and are required to update their cache to permit the newest version of the operating system to be available to them.

Termination: SPRAY-NET retains the right to restrict access to the Spray-Network in the event of failure to pay invoices, breach of franchise agreement or termination of a Franchise.

Fees and Payment Terms: Software fees for the use of the Spray-Network are broken down into reoccurring monthly fixes fees, as outlined in the franchise agreement. In addition to the monthly fixed fee, there is a weekly Tech fee royalty amount due. This accounts for 0.0025 of total job value produced the previous week.

SPRAY-NET retains the right to adjust the frequency and amount of the Spray-Network software fees and tech royalty invoiced.

In the event of major upgrades or integration of third-party applications, additional software fees may apply.

Support Maintenance: The Spray-Network chatbot bubble is the recommended method to flag user issues. Depending on the reason for the issue being submitted, response resolution may vary. All issues will be responded to during weekday business hours within a reasonable delay. If the user requires support to use the platform, in some cases, they may be sent training materials such as videos, documents or a video conference may be scheduled.

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

What This Means (2025 FDD)

The 2025 Spray Net Franchise Disclosure Document (FDD) addresses the solicitation of employees in Exhibit G to the Franchise Agreement. Specifically, if an employee of the Spray Net franchise is no longer an active owner, the Franchise Owner must take the appropriate steps to remove the user from the Spray-Network, fully revoking access to the platform.

Item 23 of the Spray Net FDD also states that an individual in a position with the franchisee agrees not to solicit any of the former customers or employees of Franchisee for any competitive business purpose.

Furthermore, if the individual is 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 that individual agrees that they will not be involved in a Competing Business of any kind for a period of two years after the expiration or termination of their 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 their employment with Franchisee ceases through the date of their involvement with the Competing Business.

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.