Does a 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.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a franchisee does not acquire ownership rights to the proprietary marks. The FDD clearly states that the proprietary marks, system, manuals, and all other information provided by Spray Net are the sole and exclusive property of the franchisor. A franchisee's right to use these marks is contingent upon their full and timely performance under the franchise agreement and is strictly limited to the terms outlined in the agreement.
Spray Net franchisees acknowledge that they gain no rights, interests, or claims to any of the franchisor's intellectual property, except for the right to use them as prescribed in the agreement. This usage is only permitted during the term of the agreement. Franchisees are prohibited from contesting or challenging Spray Net's exclusive rights to the proprietary marks, system, manuals, and other intellectual property, both during and after the agreement's term.
Furthermore, franchisees cannot adopt, display, or attempt to register any names, marks, insignias, or symbols that could be confusingly similar to Spray Net's proprietary marks. Any commercial use of the proprietary marks by the franchisee will contribute to the benefit of Spray Net, reinforcing their ownership of the marks. The franchisee's right to use the proprietary marks is non-exclusive, and Spray Net retains the right to grant licenses to others and develop other trademarks or service marks in conjunction with different systems, in which the franchisee will have no right or interest.