What is the definition of 'Designated Territory' in the context of a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall only have the right to operate the Franchised Business and offer/provide the Approved Services and, if applicable, Ancillary Services, in connection with homes that are located within the designated territory as stated in Section 3 of the Data Sheet (the "Designated Territory").
If Franchisee is granted the right to operate the Franchised Business in more than one Designated Territory, the number of Designated Territories shall be set forth in Section 3 of the Data Sheet.
Franchisor may ask Franchisee to provide the Approved Services and/or Ancillary Services outside of the Designated Territory under certain circumstances.
If Franchisee agrees to provide such Approved Services and/or Ancillary Services outside of the Designated Territory upon Franchisor's request, Franchisor shall reimburse Franchisee for all actual costs related to providing such Approved Services and/or Ancillary Services upon receiving receipts for such costs from Franchisee.
For so long as Franchisee is in compliance with this Agreement, Franchisor will not establish or operate, or license a third party the right to establish or operate, any other Business that utilizes the System and Proprietary Marks from a premises within the Designated Territory.
Notwithstanding the foregoing, regardless of whether Franchisee offers or declines to offer Ancillary Services, (1) Franchisor or an affiliate of Franchisor may offer and/or provide such Ancillary Services within the Designated Territory, (2) Franchisor may authorize another Spray-Net franchisee to offer and/or provide such Ancillary Services within the Designated Territory, or (3) Franchisor may offer and sell franchise rights to a third party under the Spray-Net brand or otherwise to offer and/or provide such Ancillary Services within the Designated Territory.
If Franchisor exercises any of its rights in this Section, there shall be no remuneration due to Franchisee.
- D. Rights Not Granted.
Franchisee acknowledges and agrees that this Agreement does not grant Franchisee any right or option to open any additional Franchised Businesses nor does this Agreement provide Franchisee with any right to sub-license or sub-franchise any of the rights granted hereunder.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the Designated Territory is the specific geographic area outlined in Section 3 of the Data Sheet, within which the franchisee is authorized to operate their Spray Net business and provide approved services. If a franchisee is granted rights to operate in multiple Designated Territories, the number of territories will be specified in Section 3 of the Data Sheet.
For a Spray Net franchisee, this means they have the exclusive right to operate within their Designated Territory, and Spray Net will not establish or license another business using the Spray Net system and proprietary marks within that territory, provided the franchisee remains in compliance with the franchise agreement. However, Spray Net retains certain rights, including the right to offer ancillary services within the franchisee's Designated Territory, authorize another franchisee to do so, or sell franchise rights to a third party for ancillary services, without any remuneration to the original franchisee.
Spray Net may request a franchisee to provide services outside of their Designated Territory under certain circumstances, in which case Spray Net will reimburse the franchisee for actual costs incurred, upon receiving receipts. The franchise agreement does not grant the franchisee the right to open additional Spray Net businesses or to sub-license or sub-franchise any rights. The franchisee is restricted from using the proprietary marks or system outside of their premises and Designated Territory.