Are customer communication programs considered Confidential Information under the Spray Net Personal Guaranty?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, customer communication programs are considered Confidential Information under the Personal Guaranty. During the term of the Franchise Agreement and the Personal Guaranty, franchisees will receive information that Spray Net considers confidential. This includes, but is not limited to, customer communication and retention programs, along with data used or generated in connection with those programs.
This means that franchisees and their guarantors are obligated to protect the confidentiality of these programs and related data. They cannot disclose or use this information for the benefit of any other person or entity. This obligation extends both during the term of the Franchise Agreement and even after its termination.
The broad definition of Confidential Information in the Personal Guaranty underscores the importance Spray Net places on protecting its proprietary business methods and customer relationships. Prospective franchisees should carefully review the scope of these confidentiality obligations and understand the potential consequences of breaching them.