What expenses will Spray Net NOT reimburse a franchisee for in a legal proceeding involving the Spray Net Proprietary Marks?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately notify us, in writing, if you become aware of any unauthorized use of our Proprietary Mark or other proprietary information, and you must permit us to participate in any litigation involving you and our Proprietary Marks. We will take the action we think appropriate. While we are not required to defend you against a claim against your use of our Proprietary Marks, we will reimburse you for all of your expenses reasonably incurred in any legal proceeding disputing your authorized use of any Proprietary Mark, in compliance with the Franchise Agreement and our written directives, so long as you notify us of the proceeding in a timely manner and you have complied with our directions with regard to the proceeding. We have the right to control the defense and settlement of any proceeding. We will not reimburse you for your expenses and legal fees for separate, independent legal counsel and for expenses in removing signage or discontinuing your use of any Proprietary Marks. We will not reimburse you for disputes where we challenge your use of a Proprietary Marks.
Source: Item 13 — TRADEMARKS (FDD pages 52–53)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, while Spray Net may reimburse a franchisee for expenses incurred in legal proceedings disputing the authorized use of their Proprietary Marks, there are specific exceptions. Spray Net will not cover the costs of separate, independent legal counsel chosen by the franchisee. Additionally, Spray Net will not reimburse franchisees for expenses related to removing signage or discontinuing the use of any Proprietary Marks. Finally, Spray Net will not cover expenses for disputes where they challenge the franchisee's use of a Proprietary Mark.
This means that if a Spray Net franchisee faces a legal challenge related to trademark usage and chooses to hire their own attorney instead of relying on counsel directed by Spray Net, they will be responsible for those legal fees. Similarly, if the resolution of a trademark dispute requires the franchisee to change their signage or stop using certain marketing materials bearing Spray Net's trademarks, the franchisee will bear the costs associated with these changes.
It is important for prospective Spray Net franchisees to understand these limitations on reimbursement. Franchisees should carefully consider the potential costs of trademark-related legal disputes and factor in the expenses that Spray Net will not cover. This could influence decisions about legal representation and compliance with any required changes to signage or marketing materials. Franchisees should also be aware that if Spray Net challenges the franchisee's use of a Proprietary Mark, the franchisee will be responsible for all related expenses.