Does the Spray Net agreement prohibit a franchisee from attempting to divert business or customers from other Franchisee-owned Franchised Businesses to a competitor?
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 Spray Net's 2025 Franchise Disclosure Document, the franchise agreement explicitly prohibits franchisees from diverting business or customers from other franchisee-owned Spray Net businesses to competitors. This restriction is in effect during the term of the agreement.
Specifically, a Spray Net franchisee is prohibited from diverting or attempting to divert business or customers of any Franchisee-owned Franchised Businesses to any competitor, whether through direct or indirect inducement or any other means. Additionally, franchisees are barred from performing any act that could be injurious or prejudicial to the goodwill associated with Spray Net's Proprietary Marks or the System.
This clause protects the Spray Net brand and the network of franchisees by preventing unfair competition and ensuring that franchisees focus on growing their own businesses within the Spray Net system rather than undermining other franchisees or the overall brand. This type of restriction is common in franchising to maintain brand consistency and protect the interests of all franchisees within the system.