Besides Designated Managers, who else signs the Confidentiality and Restrictive Covenant Agreement for Spray Net?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
nsent, copy, scan, duplicate, record, distribute, disseminate, or otherwise make the Manuals available to any unauthorized person or entity, in whole or in part.
- H. Prevention of Unauthorized Use or Disclosure. Franchisee shall adopt and implement all reasonable procedures as Franchisor may prescribe from time to time to prevent the unauthorized use or disclosure of any of the Confidential Information. Franchisee must ensure and require that all of its officers, agents, directors, shareholders, trustees, beneficiaries, partners, employees, and independent contractors who may obtain or who
are likely to obtain knowledge concerning the Confidential Information (collectively, "Restricted Persons") execute Franchisor's prescribed form of confidentiality agreement that will be in substantially the same form attached to this Agreement as Exhibit E (the "Confidentiality and Restrictive Covenant Agreement"). Franchisee must obtain a signed copy of the Confidentiality and Restrictive Covenant Agreement from any such person prior to, or at the same time of, that person undertaking its role and/or employment or association with Franchisee or the Franchised Business. Franchisee's spouse or significant other shall also be bound by the same requirement and shall sign the same Confidentiality and Restrictive Covenant Agreement. Franchisee must provide Franchisor with a copy of each signed Confidentiality and Restrictive Covenant Agreement within ten (10) days of Franchisor's request.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, in addition to designated managers, several other parties are required to sign the Confidentiality and Restrictive Covenant Agreement. Specifically, all officers, agents, directors, shareholders, trustees, beneficiaries, partners, employees, and independent contractors who are likely to gain knowledge of confidential information must sign the agreement. This broad requirement ensures that anyone with access to Spray Net's sensitive business data is legally bound to protect it. The agreement is in the same form as Exhibit E of the franchise agreement.
Furthermore, the franchisee themselves and the franchisee's spouse or significant other are also required to sign the Confidentiality and Restrictive Covenant Agreement. This highlights the importance Spray Net places on maintaining the confidentiality of its proprietary information, extending the obligation to those closest to the franchisee. Franchisees must provide Spray Net with a copy of each signed agreement within ten days of request.
Failure to obtain a signed agreement from any of these individuals within the specified timeframe can result in a penalty fee of $1,000. This provision underscores the seriousness with which Spray Net views compliance with the confidentiality requirements and serves as a deterrent against negligence in securing these agreements. This fee is in addition to any other remedies that Spray Net may have under the agreement or applicable law. Prospective franchisees should be prepared to manage and enforce these requirements diligently to avoid potential penalties and legal issues.