Does the Spray Net Confidentiality and Restrictive Covenant Agreement mention customer information?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
btedness of Franchisee arising under or by virtue of the aforesaid Franchise Agreement; (ii) the prohibition of any change in the percentage of Franchisee owned, directly or indirectly, by any person, without first obtaining the written consent of Franchisor prior to said proposed transfer as set forth in the Franchise Agreement; (iii) those obligations related to confidentiality, non-disclosure and indemnification; and (iv) the in-term and post-term covenants against competition, as well as all other restrictive covenants set forth in the Franchise Agreement.
ARTICLE II CONFIDENTIALITY
During the initial and any renewal terms of the Franchise Agreement and this Guaranty, you will receive information, which Franchisor considers to be Confidential Information, trade secrets and/or confidential information, including without limitation: (i) site-selection criteria; (ii) methods, techniques and trade secrets for use in connection with the proprietary business operating system that Franchisor and its affiliates have developed (the "System")forthe establishment and operation of a SPRAY-NET business(each, an "Franchised Business") and/or franchise (each, a "Franchised Business"); (iii) marketing research and promotional, marketing and advertising programs for the Franchised Business; (iv) knowledge of specification for and suppliers of, certain products, fixtures, furnishings, equipment and inventory used at the Franchised Business (v) knowledge of the operating results and financial performance of other Franchised Businesses; (vi) customer communication and retention programs, along with data used or generated in connection with those programs; (vii) Franchisor's proprietary Manuals and other instructional manuals, as well as any training materials and information Franchisor has developed for use in connection with the System; (viii) information regarding the development of Franchisor's proprietary marks (the "Proprietary Marks"); (ix) information generated by, or used or developed in, an Franchised Business's
operation, including client names, properties and contracts of any kind, addresses, telephone numbers and related information and any other information contained in the Franchised Business's computer system or proprietary software system;
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, the Confidentiality and Restrictive Covenant Agreement addresses customer information. Specifically, the agreement covers confidential information, trade secrets, and confidential information received during the franchise term. This includes customer communication and retention programs, along with data used or generated in connection with those programs.
Spray Net franchisees and their management personnel are required to adhere to the Confidentiality and Restrictive Covenant Agreement. This agreement is in place to protect Spray Net's proprietary information and customer relationships. The agreement extends to designated managers of the franchised business and officers/directors of the franchisee, ensuring that they also maintain confidentiality regarding customer data.
Furthermore, the franchise agreement states that in the event of a merger or acquisition of a franchise location, the license to use the franchise in the Spray-Network, along with customer information, may be transferred to the new owner. This indicates the importance of customer information as an asset within the Spray Net franchise system. Franchise owners are also responsible for complying with privacy policies and notifying Spray Net of specific conditions and laws related to third-party privacy and confidentiality regulations regarding consumer data in their respective locations.