In the Spray Net franchise agreement, is a signature from a guarantor required?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
B. After the Term of this Agreement.
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- 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.
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- 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 mentions 'guarantors' in the context of post-term restrictive covenants. Specifically, after the franchise agreement expires, is terminated, or is not renewed, certain restrictions apply to the franchisee, their principals, owners, guarantors, and their immediate family members.
These parties are restricted from involvement with any business that competes with Spray Net by offering or granting licenses or franchises, or establishing joint ventures for operating a competing business. This restriction applies for two years after the agreement ends, within any location where Spray Net has offered or sold franchises as of the termination or expiration date.
Additionally, for two years after the agreement ends, the franchisee, their principals, owners, guarantors, and their immediate family members are prohibited from owning, maintaining, or being involved with 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 that is open and operating; or within a 50-mile radius of any other designated territory granted by Spray Net, regardless of whether a franchised business is operating there. Therefore, while a guarantor's signature may not be explicitly required on the initial franchise agreement, guarantors are subject to certain obligations and restrictions outlined in the agreement.