After the Spray Net Franchise Agreement expires or is terminated, are there any restrictions on soliciting employees of the franchisor or other franchisees?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| o. | Franchisor's option to purchase Franchisee's business | Section 16(H) | Upon expiration or termination of the Franchise Agreement, we have the option to purchase your assets at net depreciated book value. |
| p. | Franchisee's death or disability | Section 13(B) | You will have a period of 180 days to find a suitable legal representative that we approve to continue the operation of your Franchised Business, provided that person completes our Initial Training Program and signs our then-current franchise agreement for the remainder of your term. During this 180-day period, we may step in and operate the Franchised Business on your behalf and pay ourselves a reasonable amount to reimburse our costs associated with this operation on your behalf. We are not under any obligation to step in and operate your business during this period. |
| q. | Non-competition covenants during the term of the franchise | Section 14(A) | Neither you, your principals, guarantors, owners or Designated Managers, nor any immediate family member of you, your principals, guarantors, owners or Designated Managers, may: (i) own, operate, or otherwise be involved with, Competing Business (as defined in the Franchise Agreement); (ii) employ or seek to employ any of employees or us, our affiliates or any other System franchisee or induce such persons to leave their employment; or (iii) divert, or attempt to divert, any prospective customer to a Competing Business. |
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, during the term of the franchise agreement, franchisees are restricted from soliciting employees of Spray Net, its affiliates, or any other Spray Net franchisee. Specifically, franchisees cannot employ or seek to employ any of these individuals or induce them to leave their employment.
However, the FDD excerpt does not specify whether these restrictions continue to apply after the franchise agreement is terminated or expires. The document outlines non-competition covenants that apply post-termination, but these focus on involvement with competing businesses rather than employee solicitation.
Therefore, it remains unclear whether a former Spray Net franchisee is prohibited from soliciting employees of the franchisor or other franchisees after the agreement ends. A prospective franchisee should seek clarification from Spray Net regarding this specific point to fully understand the post-termination obligations and potential limitations.