Who are considered express third-party beneficiaries of the Spray Net agreement?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Third Party Beneficiaries. Franchisor's officers, directors, shareholders, agents and/or employees are express third-party beneficiaries of this Agreement and the mediation and other dispute
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the franchisor's officers, directors, shareholders, agents, and employees are considered express third-party beneficiaries of the franchise agreement. This means these individuals and groups have specific rights and can enforce certain provisions of the agreement directly against the franchisee.
Specifically, these beneficiaries have the authority to enforce the right to mediate and litigate claims against them by the franchisee. This clause is designed to protect those individuals acting on behalf of Spray Net from legal action by a franchisee, ensuring they can invoke dispute resolution mechanisms outlined in the franchise agreement.
This type of provision is not uncommon in franchise agreements, as it aims to shield the franchisor's personnel from liability related to the franchise operation. Prospective franchisees should understand that this clause limits their ability to directly sue the individuals associated with Spray Net and requires them to engage in mediation or litigation as specified in the agreement.