Does the Spray Net franchise agreement consider the covenants contained within it as reasonable limitations?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties agree that each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Agreement.
If all or any portion of a covenant in this Agreement is held unreasonable or unenforceable by a court or agency having valid jurisdiction in any unappealed final decision to which Franchisor is a part, I expressly agree to be bound by any lesser covenant subsumed within the terms of the covenant that imposes the maximum duty permitted by law as if the resulting covenant were separately stated in and made a part of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the franchise agreement addresses the potential for a court to find any covenant unreasonable or unenforceable. Specifically, the agreement states that if a court deems any part of a covenant unreasonable, the franchisee expressly agrees to be bound by a lesser covenant that imposes the maximum duty permitted by law. This adjustment would be treated as if the resulting covenant were originally part of the agreement. This clause ensures that even if a specific restriction is deemed too broad, a more limited, legally acceptable version will still apply.
This provision is important for prospective Spray Net franchisees because it demonstrates the franchisor's intent to enforce restrictive covenants to the fullest extent allowed by law, while also acknowledging the possibility of judicial review. It means that franchisees should expect to be held to some form of non-compete or other restrictive obligation, even if the original terms are modified by a court. The franchisee is agreeing in advance to accept a court-ordered revision of the covenant, rather than having the entire covenant thrown out.
This type of clause is relatively common in franchise agreements, as franchisors seek to protect their brand and market share. However, the specific enforceability of such covenants can vary significantly depending on state laws and the specific facts of each case. A prospective Spray Net franchisee should carefully review these covenants with legal counsel to understand their potential impact and enforceability in their specific jurisdiction. Understanding these limitations is crucial for planning their business and future career moves after the franchise term.