Is the Spray Net franchisee entitled to any right or interest in other trademarks, licenses, or systems developed by the franchisor?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee understands and agrees that its right to use the Proprietary Marks is non-exclusive, that Franchisor in its sole discretion has the right to grant licenses to others to use the Proprietary Marks and obtain the benefits of the System in addition to the licenses and rights granted to Franchisee under this Agreement, and that Franchisor may develop and license other trademarks or service marks in conjunction with systems other than the System on any terms and conditions as Franchisor may deem advisable where Franchisee will have no right or interest in any such other trademarks, licenses, or systems.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the franchisee's right to use the Proprietary Marks is non-exclusive. Spray Net retains the right to grant licenses to others to use the Proprietary Marks and System, in addition to the rights granted to the franchisee under the Franchise Agreement.
Spray Net also has the right to develop and license other trademarks or service marks in conjunction with systems other than the System. The franchisee will not have any right or interest in any such other trademarks, licenses, or systems. This means that Spray Net can create new brands or systems and license them to others without providing any benefit or ownership stake to the existing franchisees.
This clause clarifies that the franchisee's rights are limited to the specific franchise agreement and do not extend to any future developments or intellectual property created by Spray Net. A potential franchisee should understand that Spray Net retains full control over its trademarks and systems and can expand its business in any direction without involving the franchisee, which is a fairly standard practice in franchising.