What conditions must a legal representative meet to continue operating a Spray Net franchise after the franchisee's death, disability, or incapacitation?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
t sell, transfer, assign or encumber Franchisee's interest in this Agreement or the Franchised Business (or undertake any of the actions identified in Section 13(C) of this Agreement) without Franchisor's prior written consent. Any sale, transfer, assignment or encumbrance made without Franchisor's prior written consent shall be voidable at Franchisor's option and shall subject this Agreement to termination as specified herein.
B. Death or Disability.
-
- In the event of Franchisee's death, disability or incapacitation (or the death, disability or incapacitation of Franchisee's principals/owners/guarantors), Franchisee's legal representative, or Franchisee's partner's or guarantor's respective legal representative, as applicable, will have the right to continue the operation of the Franchised Business as "Franchisee" under this Agreement if: (i) within one hundred and eighty (180) days from the date of death, disability or incapacity (the "180 Day Period"), such person has obtained Franchisor's prior written approval and has executed Franchisor's then-current franchise agreement for the unexpired term of the franchise, or has furnished a personal guaranty of any partnership, corporate or limited liability company Franchisee's obligations to Franchisor and Franchisor's affiliates; and (ii) such person successfully completes Franchisor's training program (which Franchisor will provide at Franchisor's thencurrent tuition rate). Such assignment by operation of law will not be deemed in violation of this Agreement, provided such heirs or legatees accept the conditions imposed by the Franchise Agreement and are acceptable to Franchisor.
-
- Franchisor is under no obligation to operate the Franchised Business, or incur any obligation on behalf of any incapacitated franchisee, during or after the 180 Day Period. If necessary, Franchisee (or Franchisee's legal representative, as applicable) shall appoint a previously approved acting interim manager to operate the Franchised Business during the 180 Day Period.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, in the event of the franchisee's death, disability, or incapacitation, their legal representative has the right to continue operating the franchise under certain conditions. To do so, the legal representative must obtain Spray Net's prior written approval within 180 days from the date of the event. They must also execute Spray Net's then-current franchise agreement for the unexpired term of the franchise or provide a personal guaranty for the franchisee's obligations.
Additionally, the legal representative must successfully complete Spray Net's training program, which is provided at the franchisor's then-current tuition rate. This assignment by operation of law will not be considered a violation of the franchise agreement, provided the heirs or legatees accept the conditions imposed by the agreement and are acceptable to Spray Net.
Spray Net is not obligated to operate the franchised business or incur any obligations on behalf of an incapacitated franchisee during or after the 180-day period. If necessary, the franchisee or their legal representative must appoint a previously approved acting interim manager to operate the business during this period. Spray Net retains the option, but not the requirement, to operate the franchise on the franchisee's behalf and at the franchisee's expense, covering obligations and reimbursing themselves for management services.