What is the duration of the Spray Net franchisee's right to use the Proprietary Marks?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the Proprietary Marks, System, Manuals, and all other information and items delivered to Franchisee by Franchisor under this Agreement or in furtherance of the System, including without limitation, signage, video and audio tapes or disks, information communicated by electronic means, and intellectual property, are the sole and exclusive property of Franchisor, and Franchisee's right to use the same are contingent upon Franchisee's continued full and timely performance under this Agreement.
Franchisee acknowledges it acquires no rights, interests, or claims to any of said property, except for Franchisee's rights to use the same under this Agreement for the term hereof and strictly in the manner prescribed.
Franchisee agrees that it will not, during the term of this Agreement or any time
thereafter, contest or challenge the sole and exclusive proprietary rights of Franchisor (and, if appropriate, Franchisor's affiliates) to the Proprietary Marks, System, Manuals, and other information, intellectual property, and items delivered or provided or to which Franchisee obtains access under this Agreement, nor shall Franchisee claim any proprietary interest in such property. Franchisee agrees that it will not adopt, display, attempt to register or otherwise use any names, marks, insignias, or symbols in any business that are or may be confusingly similar to the Proprietary Marks licensed under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the franchisee's right to use the Proprietary Marks is tied to the term of the Franchise Agreement. The franchisee can use the Proprietary Marks and System to promote and operate the franchised business within their designated territory. However, this right is contingent upon the franchisee's full and timely performance under the Franchise Agreement.
Spray Net retains ownership of the Proprietary Marks, System, Manuals, and all other information provided to the franchisee. The franchisee only acquires the right to use these items for the duration of the franchise term and strictly as prescribed by Spray Net. The franchisee cannot claim any proprietary interest in these items and agrees not to contest Spray Net's exclusive rights to them, both during and after the term of the agreement.
Exhibit G to the Franchise Agreement further clarifies that the license rights to use the Spray-Network software are limited to the duration of the terms of the franchise agreement. If the franchise agreement is terminated due to a breach of contract, non-payment, or any other reason, Spray Net retains the right to restrict access to the Spray-Network. This reinforces that the franchisee's rights to use Spray Net's intellectual property, including its software and Proprietary Marks, are directly linked to the active and compliant status of the franchise agreement.
In practical terms, this means a Spray Net franchisee must remain in good standing and adhere to all terms of the franchise agreement to maintain their right to use the Proprietary Marks and associated systems. Any failure to comply with the agreement could result in the loss of these rights, impacting the franchisee's ability to operate the business. This is a fairly standard arrangement in franchising, as franchisors need to protect their brand and ensure consistent quality across all franchise locations.