What form will the Confidentiality and Restrictive Covenant Agreement be in for Spray Net franchisees?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
nsent, copy, scan, duplicate, record, distribute, disseminate, or otherwise make the Manuals available to any unauthorized person or entity, in whole or in part.
- H. Prevention of Unauthorized Use or Disclosure. Franchisee shall adopt and implement all reasonable procedures as Franchisor may prescribe from time to time to prevent the unauthorized use or disclosure of any of the Confidential Information. Franchisee must ensure and require that all of its officers, agents, directors, shareholders, trustees, beneficiaries, partners, employees, and independent contractors who may obtain or who
are likely to obtain knowledge concerning the Confidential Information (collectively, "Restricted Persons") execute Franchisor's prescribed form of confidentiality agreement that will be in substantially the same form attached to this Agreement as Exhibit E (the "Confidentiality and Restrictive Covenant Agreement"). Franchisee must obtain a signed copy of the Confidentiality and Restrictive Covenant Agreement from any such person prior to, or at the same time of, that person undertaking its role and/or employment or association with Franchisee or the Franchised Business. Franchisee's spouse or significant other shall also be bound by the same requirement and shall sign the same Confidentiality and Restrictive Covenant Agreement. Franchisee must provide Franchisor with a copy of each signed Confidentiality and Restrictive Covenant Agreement within ten (10) days of Franchisor's request.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the Confidentiality and Restrictive Covenant Agreement that franchisees and their personnel must sign will be in substantially the same form as Exhibit E attached to the Franchise Agreement. This agreement is designed to protect Spray Net's confidential information and prevent unfair competition.
Spray Net franchisees are responsible for ensuring that all officers, agents, directors, shareholders, trustees, beneficiaries, partners, employees, and independent contractors with access to confidential information, as well as the franchisee's spouse or significant other, execute this agreement. Franchisees must obtain a signed copy from these individuals before or at the time they begin their role or association with the Spray Net franchise. The franchisee must provide Spray Net with a copy of each signed agreement within ten days of the franchisor's request.
Failure to provide a signed form within the specified timeframe may result in a penalty fee of $1,000, in addition to any other remedies available to Spray Net under the agreement or applicable law. This highlights the importance of franchisees diligently managing and enforcing the confidentiality agreements within their organization to avoid potential penalties and legal issues. Exhibit E to the Franchise Agreement is titled "CONFIDENTIALITY AND RESTRICTIVE COVENANT AGREEMENT".