What must a Spray Net franchisee do before commencing legal action against the franchisor?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Before commencing any legal action against Franchisor or its affiliates with respect to any such claim or dispute, Franchisee must submit a notice to Franchisor, which specifies, in detail, the precise nature and grounds of such claim or dispute.
Franchisor will have a period of thirty (30) days following receipt of such notice within which to notify Franchisee as to whether Franchisor or its affiliates elects to exercise its option to submit such claim or dispute to mediation.
Franchisee may not commence any action against Franchisor or its affiliates with respect to any such claim or dispute in any court unless Franchisor fails to exercise its option to submit such claim or dispute to mediation, or such mediation proceedings have been terminated either: (i) as the result of a written declaration of the mediator(s) that further mediation efforts are not worthwhile; or (ii) as a result of a written declaration by Franchisor.
Franchisor's rights to mediation, as set forth herein, may be specifically enforced by Franchisor.
Each party will bear its own cost of mediation and Franchisor and Franchisee will share mediator fees equally.
This agreement to mediate will survive any termination or expiration of this Agreement.
The parties will not be required to first attempt to mediate a controversy, dispute, or claim through mediation as set forth in this Section 21(C) if such controversy, dispute, or claim concerns an allegation that a party has violated (or threatens to violate, or poses an imminent risk of violating): (i) any federally protected intellectual property rights in the Proprietary Marks, the System, or in any Confidential Information or other confidential information; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, before a franchisee can start a lawsuit against Spray Net or its affiliates regarding any claim or dispute, the franchisee must first provide Spray Net with a detailed written notice. This notice must specify the exact nature and grounds for the claim or dispute.
Following receipt of this notice, Spray Net has 30 days to decide whether to submit the claim or dispute to mediation. The franchisee cannot proceed with any legal action in court unless Spray Net declines to use mediation, or the mediation process ends without a resolution. Termination of mediation can occur if the mediator declares that further efforts are not worthwhile or if Spray Net makes a written declaration to that effect.
Spray Net retains the right to enforce mediation. Each party is responsible for their own mediation costs, and they will split the mediator fees equally. This agreement to mediate survives any termination or expiration of the Franchise Agreement. However, mediation is not required for claims involving violations of intellectual property rights, restrictive covenants, or the franchisee's payment obligations under the agreement.