Does Spray Net consider harm from a breach of the non-compete agreement to be irreparable?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchisee cannot consent to us obtaining injunctive relief. We may seek injunctive relief. See Minnesota Rule 2860.4400(I) also, a court will determine if a bond is required.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
Based on the 2025 Spray Net Franchise Disclosure Document, there is no explicit statement indicating that Spray Net considers harm from a breach of the non-compete agreement to be irreparable. However, the Minnesota Addendum to the Franchise Disclosure Document states, "The franchisee cannot consent to us obtaining injunctive relief. We may seek injunctive relief. See Minnesota Rule 2860.4400(I) also, a court will determine if a bond is required."
This suggests that Spray Net reserves the right to pursue injunctive relief, which is a legal remedy often sought when monetary damages are insufficient to compensate for the harm caused by a breach, such as a violation of a non-compete agreement. Injunctive relief could prevent a franchisee from continuing to operate a competing business, effectively enforcing the non-compete terms. The fact that a court will determine if a bond is required indicates that the court will assess the situation before granting injunctive relief.
While the FDD doesn't use the specific term "irreparable harm," the ability to seek injunctive relief implies that Spray Net views a breach of the non-compete agreement as potentially causing harm that cannot be easily remedied with money alone. A prospective franchisee should seek clarification from Spray Net regarding the circumstances under which they would pursue injunctive relief and how they assess the potential harm caused by a breach of the non-compete agreement.