After the Spray Net Franchise Agreement expires, is terminated, or is not renewed, can a Spray Net franchisee solicit any of Spray Net's other employees to discontinue employment?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
I also agree that I will not undertake any action to divert business from the Franchised Business to any Competing Business, or solicit any of the former customers or employees of Franchisee for any competitive business purpose.
- 7.1 Post-Term Restrictive Covenant for Designated Manager of Franchised Business or Manager/Officers/Directors of Franchisee.
In the event I am a manager of the Franchised Business, or an officer/director/manager/partner of Franchisee that has not already executed a Personal Guaranty agreeing to be bound by the terms of the Franchise Agreement, then I further agree that I will not be involved in a Competing Business of any kind for a period of two years after the expiration or termination of my employment with Franchisee for any reason: (i) at or within a 60 mile radius of the Premises; or (ii) within a 60-mile radius of any other Franchised Business that exists at the time my employment with Franchisee ceases through the date of my involvement with the Competing Business.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
The 2025 Spray Net Franchise Disclosure Document (FDD) addresses certain restrictions placed on franchisees after the termination, expiration, or non-renewal of the Franchise Agreement. Specifically, it outlines non-compete obligations that prevent former franchisees from engaging in activities that directly compete with Spray Net. However, the FDD does not explicitly state whether a former Spray Net franchisee is prohibited from soliciting employees of other Spray Net franchisees to discontinue their employment after the agreement's termination, expiration, or non-renewal.
While the FDD does not directly address the solicitation of employees, it does state that a manager of the Franchised Business, or an officer/director/manager/partner of Franchisee that has not already executed a Personal Guaranty agreeing to be bound by the terms of the Franchise Agreement, agrees that they will not undertake any action to divert business from the Franchised Business to any Competing Business, or solicit any of the former customers or employees of Franchisee for any competitive business purpose. This agreement lasts for a period of two years after the expiration or termination of their employment with Franchisee for any reason: (i) at or within a 60 mile radius of the Premises; or (ii) within a 60-mile radius of any other Franchised Business that exists at the time their employment with Franchisee ceases through the date of their involvement with the Competing Business.
Given the absence of a direct prohibition on soliciting other franchisees' employees, a prospective Spray Net franchisee should seek clarification from the franchisor regarding this specific issue. Understanding the franchisor's stance on this matter is crucial for making informed decisions about the franchise opportunity and avoiding potential disputes in the future. It would be prudent to inquire about any unwritten policies or expectations related to employee solicitation within the Spray Net franchise system.