What exhibit in the Spray Net Franchise Agreement covers 'Collateral Assignment and Assumption of Lease'?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit A: Data Sheet
Exhibit B: Personal Guaranty
Exhibit C: Collateral Assignment and Assumption of Lease
Exhibit D: EFT Authorization Form
Exhibit E: Confidentiality and Restrictive Covenant Agreement (for use by Franchisee for Management Personnel of the Franchised Business and Officers/Directors of the Franchisee)
Exhibit F: Conditional Assignment of Telephone/Facsimile Numbers and Domain Names
Exhibit G: Spray-Network Terms and Conditions
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Exhibit C of the Franchise Agreement contains the 'Collateral Assignment and Assumption of Lease'. This exhibit is a standard legal document used when a franchisee's lease obligations are transferred to the franchisor or another party as collateral.
For a prospective Spray Net franchisee, this means that if they lease a property for their business, this lease could be assigned to Spray Net under certain conditions. This is a common practice in franchising to protect the franchisor's interests and ensure business continuity.
The 'Collateral Assignment and Assumption of Lease' agreement ensures that Spray Net has the right to take over the lease if the franchisee defaults or the franchise agreement is terminated. This protects Spray Net by allowing them to continue operating the business at that location or transfer the lease to a new franchisee. Franchisees should carefully review Exhibit C with their legal counsel to understand the circumstances under which the lease can be assigned and the implications of such an assignment.