Does the Spray Net Confidentiality and Restrictive Covenant Agreement state that the Confidential Information will be disclosed?
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.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, franchisees must ensure that all individuals who are likely to obtain knowledge of confidential information, referred to as "Restricted Persons," execute the Confidentiality and Restrictive Covenant Agreement. This includes officers, agents, directors, shareholders, trustees, beneficiaries, partners, employees, and independent contractors. Even the franchisee's spouse or significant other is required to sign this agreement.
Spray Net requires franchisees to obtain a signed copy of this agreement from each Restricted Person before or during their association with the franchise. The franchisee must then provide Spray Net with a copy of each signed agreement within ten days of the franchisor's request. Failure to provide a signed form within this period could lead to issues, although the document does not specify the consequences of failing to do so.
This requirement ensures that Spray Net's confidential information is protected by legally binding agreements with all individuals who have access to it through the franchisee's operations. This is a common practice in franchising to safeguard trade secrets and proprietary information. Prospective franchisees should be prepared to manage the administrative task of collecting and submitting these agreements to Spray Net in a timely manner.