What is the cure period for a default on another agreement with Spray Net or its affiliates?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's failure to comply with any of Franchisor's other System standards and specifications in the operation of the Franchised Business as set forth in the Manuals; and (ii) fails to cure such breach or violation within thirty (30) days of the date Franchisee is provided with notice thereof by Franchisor.
- D. Loss of Designated Territory.
Notwithstanding the foregoing, if Franchisee is in default of this Agreement under Section 6(Z), Franchisor may, in its sole discretion and as an alternative to terminating this Agreement, elect to reduce the size of Franchisee's Designated Territory and own and operate, or license another to operate, additional Spray-Net businesses in the Designated Territory.
In the event Franchisor elects to reduce Franchisee's Designated Territory and/or terminate Franchisee's exclusive rights therein, Franchisor will provide Franchisee with written notice thereof.
Upon receipt of such notice, Franchisee will have ten (10) calendar days to execute an addendum to this Agreement detailing the revised boundaries of the Designated Territory and/or termination of exclusive rights therein.
If Franchisee does not execute this Addendum with the prescribed time period, then Franchisor may, at its option, immediate terminate this Agreement upon notice to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
The 2025 Spray Net Franchise Disclosure Document (FDD) specifies a 30-day cure period for breaches of franchise standards. If a Spray Net franchisee fails to comply with the System standards and specifications outlined in the manuals, they have 30 days from the date of notification to correct the issue. Failure to cure within this timeframe can lead to further action by Spray Net.
However, the FDD also describes a different cure period related to the Designated Territory. If a Spray Net franchisee defaults under Section 6(Z) of the agreement, Spray Net may choose to reduce the size of the franchisee's territory instead of terminating the agreement. In this case, the franchisee has only ten calendar days to execute an addendum detailing the revised territory boundaries. If the franchisee fails to sign the addendum within this shorter period, Spray Net can immediately terminate the agreement.
Prospective Spray Net franchisees should note the distinction between these cure periods. Most breaches allow for a 30-day cure period, but issues related to the designated territory require much faster action within ten days. It is important to understand the specific terms of the franchise agreement and the potential consequences of default to avoid termination or loss of territory.