factual

In the Spray Net collateral assignment, what does the conditional assignment relate to?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. , 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

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

What This Means (2025 FDD)

According to Spray Net's 2025 Franchise Disclosure Document, the conditional assignment involves the franchisee's telephone numbers, facsimile numbers, and domain names used for their Spray-Net franchised business. This assignment is conditional, meaning it only becomes effective upon the termination or expiration of the franchise agreement.

Upon the termination or expiration of the franchise, the franchisee is obligated to transfer all rights and usage of the assigned property to Spray-Net. This includes taking all necessary actions required by the telephone company and/or domain name registrar to ensure the assignment is fully effective, as if Spray-Net were the original owner of these assets.

Furthermore, the franchisee is responsible for paying all outstanding amounts owed for the use of the assigned property up to the date the assignment becomes effective. The franchisee also agrees to cover any costs Spray-Net incurs to effectuate this agreement and must cooperate fully with the telephone company, domain name registrar, and Spray-Net to complete the assignment. This ensures a smooth transition of these assets back to Spray-Net upon the end of the franchise term.

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.