What is the effect of the Spray Net collateral assignment on other rights or remedies of the franchisor?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
- , doing business as Franchised Business (the "Assignor"), in exchange for valuable consideration provided by SPRAY-NET INC. (the "Assignee"), receipt of which ishereby acknowledged hereby conditionally assigns to Assignee all telephone numbers, facsimile numbers,domain names, as well as any listings associated therewith, utilized by Assignor in the operation of its SPRAY-NET franchised business located at (collectively, the"Assigned Property"). The Assigned Property includes the following: Telephone Number(s): Facsimile Number(s): Domain Name(s) (as permitted by Franchisor under the Franchise Agreement): 2. The conditional agreement will become effective automatically upon termination, Upon the occurrence of that condition, Assignor must do expiration of Assignor's franchise. all things required by the telephone company and/or domain name registrar to assure the effectiveness of the assignment of Assigned Property as if the Assignee had been originally issued such Assigned Property andthe usage thereof. 3. telephone Assignor company agrees and/or to domain pay the registrar, on or beforethe effective date of assignment, all amounts owed for the use of the Assigned Property up to the date thisAssignment becomes effective. Assignor further agrees to indemnify Assignee for any sums Assignee mustpay the telephone company or domain name registrar to effectuate this agreement, and agrees to fully cooperate with the telephone company and/or domain effectuating this assignment. name registrar, as well as the Assignee, in
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
Based on the 2025 Spray Net Franchise Disclosure Document, Exhibit F outlines a conditional assignment of telephone numbers and domain names from the franchisee (Assignor) to Spray Net Inc. (Assignee). This assignment is in exchange for valuable consideration provided by Spray Net.
The agreement specifies that upon termination or expiration of the franchise, the conditional assignment becomes effective automatically. At that point, the franchisee must take all necessary actions to transfer the Assigned Property (telephone numbers, facsimile numbers, and domain names) to Spray Net as if Spray Net were the original owner.
The franchisee is responsible for paying all amounts owed for the use of the Assigned Property up to the date the assignment becomes effective and must indemnify Spray Net for any sums Spray Net pays to effectuate the agreement. This ensures Spray Net maintains control over key communication channels and online presence associated with the Spray Net business after a franchise agreement ends, without specifying effects on other rights or remedies of the franchisor.