Is a Spray Net Designated Manager required to sign a Confidentiality and Non-Compete Agreement?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Under certain conditions and with our prior approval, we may permit you to appoint a Designated Manager to handle day-to-day management of the Franchised Business on-site at the premises. Your Designated Manager must complete all components of our initial training, but we do not require that your Designated Manager immediately have an ownership interest in a corporate or partnership franchisee. If you engage a Designated Manager to manage the day-to-day operations of the Franchised Business, your Designated Manager must, by one (1) year after the Franchised Business opens for business, either (i) own ten percent (10%) of the equity interest in Franchisee and/or the Franchised Business or (ii) be granted a compensation package that grants the Designated Manager ten percent (10%) of the equity interest in Franchisee and/or the Franchised Business within a reasonable period of time. The Designated Manager will need to be approved by us and will need to sign the form of Confidentiality and Non-Compete Agreement in a form substantially similar to the form attached to your Franchise Agreement. Any Designated Manager, including any replacement manager, must attend and complete all required training before assuming any management responsibility in connection with your Franchised Business.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 55)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, if a franchisee appoints a Designated Manager to handle the day-to-day operations of the Franchised Business, that Designated Manager is required to sign a Confidentiality and Non-Compete Agreement. This agreement must be in a form substantially similar to the one attached to the Franchise Agreement.
Spray Net requires this agreement to protect its confidential information and proprietary marks. The Designated Manager must also be approved by Spray Net and complete all required training before assuming any management responsibilities.
This requirement ensures that individuals managing a Spray Net franchise on behalf of the franchisee are bound by the same confidentiality and non-compete obligations as the franchisee, safeguarding Spray Net's business interests and maintaining uniformity across its franchise network. This is a fairly standard practice in franchising, as franchisors typically want to ensure that anyone in a management position understands and agrees to protect the franchisor's confidential information and business practices.