What evidence must a Spray Net franchisee provide to the franchisor to demonstrate compliance with post-term obligations?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
tion or termination of this Agreement for any reason, without cost to Franchisor; and
- E. Compliance with Post-Term Covenants. Comply with the post-term covenants not to compete and other restrictive covenants set forth in Section 14 of this Agreement;
- F. Payment of Amounts Due. Pay Franchisor, as well as each of Franchisor's Approved Suppliers, any and all amounts owed under this Agreement or otherwise in connection with the former Franchised Business within 10 days of the termination or expiration date.
- G. Written Evidence of Compliance. Provide Franchisor with written evidence that they have complied with the post-term obligations, within thirty (30) days' notice of termination or scheduled expiration of the franchise; and
- H. Purchase of Assets. Franchisor shall have the option, but not the obligation, within thirty (30) days after the date of termination, expiration, and non-renewal of this Agreement to purchase any and all of Franchisee's operating assets from the Franchised Business at a purchase price equal to net depreciated book value. If Franchisor elects this option, Franchisor will deliver written notice to Franchisee. Franchisor will have the right to inspect equipment at any time during this thirty (30) day period. If Franchisor elects to purchase equipment as part of the asset purchase, Franchisor will be entitled to, and Franchisee must provide, all customary warranties and representations as to compliance with law, the maintenance, function, and condition of the equipment and Franchisee's good title to the equipment (including, but not limited to, that Franchisee owns the equipment free and clear of any liens and encumbrances).
- I. Disconnection of Telephone Number on Termination/Renewal. Franchisee acknowledges that there will be substantial confusion among the public if, after the termination or expiration and non-renewal of this Agreement, Franchisee continues to use advertisements and/or the telephone number listed in the telephone directory under the name "SPRAY-NET" or any name similar to it.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a franchisee must provide written evidence to the franchisor to demonstrate compliance with post-term obligations. This evidence must be provided within thirty (30) days' notice of termination or the scheduled expiration of the franchise agreement.
Post-term obligations include several key requirements. The franchisee must remove all trade dress and physical characteristics that indicate operation under the Spray Net system from the premises and approved vehicles. Franchisees may need to provide documentation of this removal to Spray Net, as specified in Section 16(G) of the agreement. Additionally, upon request from Spray Net, the franchisee must return all materials bearing the Proprietary Marks without cost to Spray Net.
Furthermore, franchisees must comply with the post-term covenants not to compete and other restrictive covenants as detailed in Section 14 of the Franchise Agreement. They are also obligated to pay Spray Net, as well as its approved suppliers, any outstanding amounts owed under the agreement or in connection with the former franchised business. These payments must be made within 10 days of the termination or expiration date.