Following the expiration or termination of a Spray Net franchise, are there restrictions on contacting the franchisor's suppliers or vendors?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Franchise | Summary |
|---|---|---|
| Agreement | ||
| Section 15(B) | general assignment for the benefit of creditors; (ii) a bankruptcy | |
| petition if filed by or against you and not dismissed within 30 | ||
| days; (iii) a bill in equity or appointment of receivership is filed | ||
| in connection with you or the Franchised Business; (iv) a receiver | ||
| or custodian of your assets of property is appointed; (v) a final | ||
| judgment in the amount of $10,000 or more is entered against you | ||
| and not satisfied within 60 days (or longer period if we consent); | ||
| and (vi) | ||
| you attempt to make an invalid transfer in violation of | ||
| Section 13 of your Franchise Agreement. | ||
| Your Franchise Agreement may be terminated with notice but | ||
| without an opportunity to cure: (i) if you commit any fraud or | ||
| misrepresentation in the establishment or operation of the | ||
| Franchised Business; (ii) if you fail to attend and complete the | ||
| Initial Training Program; (iii) if you receive 3 or more notices to | ||
| cure the same or similar defaults within any 12-month period; (iv) | ||
| you violate the in-term restrictive covenant; (v) you misuse the | ||
| Proprietary | ||
| Marks or Confidential Information; (vi) you misuses | ||
| any proprietary software; (vii) you default under any other | ||
| agreement with us, our affiliate(s) or any Approved Supplier and | ||
| such default is not cured according to such agreement; (viii) you | ||
| default under your lease; (ix) you fail to open the Franchised | ||
| Business in the time required; (x) you abandon the Franchised | ||
| Business; (xi) you are convicted of a felony or other crime that | ||
| adversely affects the System; (xii) you take for your own personal | ||
| use the assets or property of the Franchised Business | ||
| for any | ||
| competitive or other commercial use; (xiii) there are insufficient | ||
| funds in your Payment | ||
| Account 3 or more times in any 12-month | ||
| period; (xiv) you commit repeated violates of any applicable | ||
| laws; or (xv) you on 3 or more occasions, fail to comply with the | ||
| standards and specifications found | ||
| in the Spray-Net | ||
| Operations | ||
| Manual | ||
| during any 18 month period, whether or not these failures | ||
| were timely cured. | ||
| i. Franchisee's obligations on termination/non renewal | Section 16 | Upon termination or early expiration of the Franchise Agreement, your obligations include: (i) cease ownership and operation of the Franchised Business and cease doing business in a form or manner that may give the general public the impression that you are operating a Franchised Business; (ii) return of the Spray-Net Operations Manual or any other Confidential Information to us; (iii) assign to us all approved services contracts, telephone/fax numbers and domain names; (iv) cease the use of the Proprietary Marks and trade dress; (v) comply with all post-term restrictive covenants; (vi) pay us and our Approved Suppliers any amounts owed; (vii) provide us with written confirmation of compliance with these obligations within 30 days; and (vii) cancel or, at our option, assign us all telephone/facsimile numbers and domain |
| | Provision | Section in Franchise Agreement | Summary
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–62)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Item 17 details franchisee obligations upon termination or non-renewal of the franchise agreement. These obligations include ceasing operation of the franchised business, returning the Spray-Net Operations Manual and any other confidential information, assigning approved service contracts, telephone/fax numbers and domain names to the franchisor, ceasing use of proprietary marks and trade dress, complying with post-term restrictive covenants, and paying any outstanding amounts owed to Spray Net and its approved suppliers. Franchisees must also provide written confirmation of compliance with these obligations within 30 days and cancel or assign all telephone/facsimile numbers and domain names used in connection with the franchised business to Spray Net or its designee.
However, the FDD does not explicitly state whether a former franchisee is restricted from contacting Spray Net's suppliers or vendors after the termination or expiration of the franchise agreement. The document outlines several obligations related to ceasing operations and transferring assets back to the franchisor, but it does not directly address the issue of contacting suppliers or vendors.
A prospective Spray Net franchisee should seek clarification from the franchisor regarding any potential restrictions on contacting suppliers or vendors post-termination. Understanding these restrictions is crucial for making informed decisions about the franchise opportunity and planning for potential future business ventures.