factual

After the Spray Net Franchise Agreement expires, is terminated, or is not renewed, can a Spray Net franchisee contact any of Spray Net's suppliers for any competitive business purpose?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. For a period of two (2) years after the expiration and nonrenewal, transfer or termination of this Agreement, regardless of the cause, neither Franchisee, its principals, owners and guarantors, nor any member of the immediate family of Franchisee, its principals, owners or guarantors, may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation, be involved with any business that competes in whole or in part with Franchisor by offering or granting licenses or franchises, or establishing joint ventures, for the ownership or operation of a Competing Business. The geographic scope of the covenant contained in this Section is any location where Franchisor can demonstrate it has offered or sold franchises as of the date this Agreement is terminated or expires.
    1. For a period of two (2) years after the expiration and nonrenewal, transfer or termination of this Agreement, regardless of the cause, neither Franchisee, its principals, owners and guarantors, nor any member of the immediate family of Franchisee, its principals, owners or guarantors, may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation:
    • a. Own, maintain, engage in, be employed as an officer, director, or principal of, lend money to, extend credit to, lease/sublease space to, or have any interest in or involvement with any other Competing Business:
      • i. within the Designated Territory;
      • ii. within a fifty (50) mile radius of the Designated Territory;
      • iii. within a fifty (50) mile radius of any Spray-Net franchised business

Source: Item 23 — RECEIPTS (FDD pages 75–219)

What This Means (2025 FDD)

The 2025 Spray Net Franchise Disclosure Document outlines restrictions on a franchisee's activities after the franchise agreement expires, is terminated, or is not renewed. Specifically, for two years after the agreement ends, the franchisee (including their principals, owners, guarantors, and immediate family members) is restricted from involvement with any business that competes with Spray Net by offering or granting licenses or franchises, or establishing joint ventures for a Competing Business. This restriction applies in any location where Spray Net has offered or sold franchises as of the termination or expiration date.

Additionally, for a period of two years post-termination, expiration, or non-renewal, the franchisee and related parties are prohibited from owning, maintaining, engaging in, or being employed by any other Competing Business within the Designated Territory, within a 50-mile radius of the Designated Territory, within a 50-mile radius of any Spray-Net franchised business, or within a 50-mile radius of any other designated territory granted by Spray Net or its affiliates.

The FDD excerpt does not explicitly state whether a former Spray Net franchisee can contact Spray Net's suppliers for competitive business purposes. It only restricts involvement in competing businesses and activities within specific geographic areas. A prospective franchisee should seek clarification from Spray Net regarding any restrictions on contacting suppliers after the franchise agreement ends.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.