factual

In the event of the death, disability, or incapacitation of a Spray Net franchisee's principals/owners/guarantors, who has the right to continue the operation of the franchised business?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

B. Death or Disability.

In the event of Franchisee's death, disability or incapacitation (or the death, disability or incapacitation of Franchisee's principals/owners/guarantors), Franchisee's legal representative, or Franchisee's partner's or guarantor's respective legal representative, as applicable, will have the right to continue the operation of the Franchised Business as "Franchisee" under this Agreement if: (i) within one hundred and eighty (180) days from the date of death, disability or incapacity (the "180 Day Period"), such person has obtained Franchisor's prior written approval and has executed Franchisor's then-current franchise agreement for the unexpired term of the franchise, or has furnished a personal guaranty of any partnership, corporate or limited liability company Franchisee's obligations to Franchisor and Franchisor's affiliates; and (ii) such person successfully completes Franchisor's training program (which Franchisor will provide at Franchisor's thencurrent tuition rate).

Such assignment by operation of law will not be deemed in violation of this Agreement, provided such heirs or legatees accept the conditions imposed by the Franchise Agreement and are acceptable to Franchisor.

Franchisor is under no obligation to operate the Franchised Business, or incur any obligation on behalf of any incapacitated franchisee, during or after the 180 Day Period.

Source: Item 23 — RECEIPTS (FDD pages 75–219)

What This Means (2025 FDD)

According to Spray Net's 2025 Franchise Disclosure Document, in the event of the death, disability, or incapacitation of the franchisee (or their principals/owners/guarantors), the legal representative of the franchisee, partner, or guarantor has the right to continue operating the Spray Net franchise. However, this is contingent upon meeting specific conditions within 180 days of the event.

To maintain the franchise, the legal representative must obtain Spray Net's written approval and execute the then-current franchise agreement for the remaining term. Alternatively, they can provide a personal guarantee for the franchisee's obligations if the franchisee is a partnership, corporation, or limited liability company. Additionally, the representative must successfully complete Spray Net's training program, for which tuition fees apply at the then-current rate.

Spray Net is not obligated to operate the franchise or incur any obligations on behalf of an incapacitated franchisee during or after the 180-day period. This means the responsibility falls on the franchisee's representative to take the necessary steps to continue the business. This provision ensures that Spray Net maintains control over who operates a franchise under its brand, even in unforeseen circumstances, while providing a pathway for the business to continue under new management.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.