In the event of a Spray Net franchisee's death or disability, can Spray Net operate the business on the franchisee's behalf?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of Franchisee's death, disability, absence or otherwise, Franchisor may (but is not required to) operate the Franchised Business on Franchisee's behalf and at Franchisee's expense for such period of time (and under such terms and conditions) as Franchisor determines, including paying out the assets and/or revenues of the Franchised Business to cover any or all past, current and/or future obligations of the Franchised Business (including any amounts owed to Franchisor and/or any affiliate) in such priorities as Franchisor determines in Franchisor's sole discretion.
Franchisor may pay itself a reasonable amount to reimburse Franchisor for Franchisor's management services and other costs.
Franchisor may obtain approval of a court or arbitrator for any such arrangements, the attorney's fees and other costs incurred in connection with obtaining such approval to be charged against the assets and/or revenues of the Franchised Business.
Franchisee (and/or Franchisee's estate) will indemnify Franchisor against any costs and/or liabilities incurred by it in connection with, or related in any way to, the operation (or otherwise) of the Franchised Business.
Franchisor will not collect any transfer fee if there is a transfer under this Section 13(B) to an immediate family member of the Franchisee that Franchisor approves under this Section 13(E).
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 a franchisee's death, disability, or absence, Spray Net has the option, but is not required, to operate the franchise on the franchisee's behalf. Spray Net will do so at the franchisee's expense for a period of time and under terms and conditions that Spray Net determines. This includes using the assets or revenues of the franchise to cover past, current, or future obligations of the business, including amounts owed to Spray Net or its affiliates. Spray Net has sole discretion in determining the priority of these payments.
Spray Net may also pay itself a reasonable amount to cover management services and other costs incurred during this period. To formalize these arrangements, Spray Net may seek court or arbitrator approval, with the legal fees and associated costs charged against the franchise's assets or revenues. The franchisee, or their estate, is required to indemnify Spray Net against any costs or liabilities that Spray Net incurs while operating the franchise.
Spray Net is not obligated to operate the franchise or take on any obligations for an incapacitated franchisee beyond a 180-day period. If necessary, the franchisee or their legal representative must appoint a previously approved interim manager to run the business during this 180-day period. However, Spray Net will not collect a transfer fee if the franchise is transferred to an immediate family member of the franchisee, provided that Spray Net approves the transfer.