Is the Assignment to Spray Net considered the exclusive remedy for the Franchisor?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT F TO THE FRANCHISE AGREEMENT
CONDITIONAL ASSIGNMENT OF TELEPHONE NUMBERS AND DOMAIN NAMES
- , doing business as Franchised Business (the "Assignor"), in exchange for valuable consideration provided by SPRAY-NET INC. (the "Assignee"), receipt of which ishereby acknowledged hereby conditionally assigns to Assignee all telephone numbers, facsimile numbers,domain names, as well as any listings associated therewith, utilized by Assignor in the operation of its SPRAY-NET franchised business located at (collectively, the"Assigned Property"). The Assigned Property includes the following: Telephone Number(s): Facsimile Number(s): Domain Name(s) (as permitted by Franchisor under the Franchise Agreement): 2. The conditional agreement will become effective automatically upon termination, Upon the occurrence of that condition, Assignor must do expiration of Assignor's franchise. all things required by the telephone company and/or domain name registrar to assure the effectiveness of the assignment of Assigned Property as if the Assignee had been originally issued such Assigned Property andthe usage thereof. 3. telephone Assignor company agrees and/or to domain pay the registrar, on or beforethe effective date of assignment, all amounts owed for the use of the Assigned Property up to the date thisAssignment becomes effective. Assignor further agrees to indemnify Assignee for any sums Assignee mustpay the telephone company or domain name registrar to effectuate this agreement, and agrees to fully cooperate with the telephone company and/or domain effectuating this assignment. name registrar, as well as the Assignee, in ASSIGNOR ASSIGNEE SPRAY-NET INC. Carmelo Marsala, President
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
Based on the 2025 Spray Net Franchise Disclosure Document, it is not possible to determine whether the assignment of telephone numbers and domain names to Spray Net is considered the exclusive remedy for the franchisor upon termination or expiration of the franchise agreement. While Exhibit F outlines the conditional assignment of telephone numbers and domain names from the franchisee to Spray Net, it does not explicitly state that this assignment is the exclusive remedy available to Spray Net.
The exhibit specifies that upon termination or expiration of the franchise, the franchisee must transfer all rights to telephone numbers, facsimile numbers, and domain names to Spray Net. The franchisee is also responsible for paying any outstanding amounts owed to the telephone company or domain name registrar before the assignment becomes effective and must indemnify Spray Net for any costs they incur to effectuate the agreement.
To fully understand the implications, a prospective Spray Net franchisee should seek clarification from the franchisor regarding whether this assignment represents the exclusive remedy or if Spray Net retains other rights or remedies upon termination or expiration of the franchise agreement. It would also be prudent to consult with a legal professional to review the franchise agreement and related exhibits to assess the full scope of obligations and potential liabilities.