Can a Spray Net franchisee consolidate proceedings with other proceedings involving Spray Net and third parties?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
THE PARTIES AGREE THAT ALL PROCEEDINGS ARISING OUT OF OR RELATED TO THIS AGREEMENT, OR THE SALE OF THE FRANCHISED BUSINESS, WILL BE CONDUCTED ON AN INDIVIDUAL,NOT A CLASS-WIDE BASIS, AND THAT ANY PROCEEDING BETWEEN FRANCHISEE, FRANCHISEE'S GUARANTORS AND FRANCHISOR OR ITS AFFILIATES/OFFICERS/EMPLOYEES/AGENTS/REPRESENTATIVES MAY NOT BE CONSOLIDATED WITH ANY OTHER PROCEEDING BETWEEN FRANCHISOR AND ANY OTHER THIRD PARTY.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a franchisee is prohibited from consolidating any proceedings arising out of or related to the franchise agreement with any other proceeding between Spray Net and any other third party. This means that any legal actions or disputes initiated by a Spray Net franchisee must be pursued on an individual basis.
This restriction prevents a Spray Net franchisee from joining forces with other franchisees or third parties to pursue collective legal action against Spray Net. The agreement explicitly states that proceedings will be conducted on an individual basis and cannot be consolidated with other cases involving Spray Net.
This waiver is significant because it limits a franchisee's ability to leverage collective bargaining or legal power. Should a franchisee have a dispute with Spray Net, they must act independently, bearing the full cost and risk of the legal process. This could be a disadvantage for franchisees who might benefit from pooling resources and sharing information in a consolidated case.