Does the Spray Net franchisee acquire any ownership rights to the Proprietary Marks?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
by Franchisor.
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- Upon Franchisor's request, Franchisee hereby covenants and agrees that it will affix in a conspicuous location in or upon the Premises, a sign containing the following notice: "This business is owned and operated independently by (name of franchisee) who is an authorized SPRAY-NET franchisee."
- D. Proprietary Marks are Sole Property of Franchisor. Franchisee acknowledges that the Proprietary Marks, System, Manuals, and all other information and items delivered to Franchisee by Franchisor under this Agreement or in furtherance of the System, including without limitation, signage, video and audio tapes or disks, information communicated by electronic means, and intellectual property, are the sole and exclusive property of Franchisor, and Franchisee's right to use the same are contingent upon Franchisee's continued full and timely performance under this Agreement. Franchisee acknowledges it acquires no rights, interests, or claims to any of said property, except for Franchisee's rights to use the same under this Agreement for the term hereof and strictly in the manner prescribed. Franchisee agrees that it will not, during the term of this Agreement or any time
thereafter, contest or challenge the sole and exclusive proprietary rights of Franchisor (and, if appropriate, Franchisor's affiliates) to the Proprietary Marks, System, Manuals, and other information, intellectual property, and items delivered or provided or to which Franchisee obtains access under this Agreement, nor shall Franchisee claim any proprietary interest in such property. Franchisee agrees that it will not adopt, display, attempt to register or otherwise use any names, marks, insignias, or symbols in any business that are or may be confusingly similar to the Proprietary Marks licensed under this Agreement.
- E. Legal Action Involving Proprietary Marks. Furthermore, Franchisee agrees to cooperate with and assist Franchisor in connection with any legal action brought by or against either of them regarding the protection and preservation of the Proprietary Marks, System, or the Manuals and other information and intellectual property delivered to Franchisee or used by Franchisee under this Agreement.
- G. Modification or Substitution of Marks by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees do not acquire any ownership rights to the Proprietary Marks. The FDD states that the Proprietary Marks, System, Manuals, and all other information provided to the franchisee are the sole and exclusive property of Spray Net. The franchisee's right to use these marks and the system is contingent upon their full and timely performance under the franchise agreement.
Spray Net franchisees only have the right to use the Proprietary Marks for the duration of the agreement and strictly in the manner prescribed by Spray Net. Franchisees acknowledge that they gain no rights, interests, or claims to any of Spray Net's property, including the Proprietary Marks, beyond the specific usage rights granted in the agreement.
Moreover, franchisees are prohibited from contesting Spray Net's exclusive rights to the Proprietary Marks, System, Manuals, and other intellectual property. They cannot adopt, display, or attempt to register any names, marks, insignias, or symbols that are confusingly similar to Spray Net's Proprietary Marks. This ensures that the brand's identity and trademarks remain solely under the control of Spray Net, protecting its brand integrity and market position.
Spray Net retains the right to grant licenses to others to use the Proprietary Marks and System, and the franchisee has no right or interest in any other trademarks, licenses, or systems that Spray Net may develop or license. The franchisee's use of the Proprietary Marks outside the scope of the license, without Spray Net's prior written consent, is considered an infringement of Spray Net's exclusive rights.