Does the Spray Net franchisee have to execute documents to comply with post-term obligations?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
SPRAY-NET INC. MINNESOTA ADDENDUM TO THE FRANCHISE AGREEMENT
The Sections of the Franchise Agreement regarding your obligation to execute a general release upon assignment or renewal are deleted in their entirety in accordance with Minnesota Rule 2860.4400(D).
SPRAY-NET INC. MARYLAND ADDENDUM TO THE FRANCHISE AGREEMENT
Under COMAR 02-02-08-16L, the general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Law.
SPRAY-NET INC. MINNESOTA ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT
Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(j) prohibit us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes.
Minnesota Rules 2860.4400(D) prohibits us from requiring a franchisee to assent to a general release.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, franchisees in Minnesota are not required to sign a general release upon assignment or renewal of their franchise agreement. This is due to Minnesota Rule 2860.4400(D). Additionally, Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(j) prevent Spray Net from requiring litigation to occur outside of Minnesota, enforcing a waiver of a jury trial, or mandating that the franchisee consent to liquidated damages, termination penalties, or judgment notes.
For franchisees in Maryland, the Maryland Addendum specifies that the general release typically required for renewal, sale, or assignment/transfer does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. This means a franchisee isn't required to release Spray Net from liabilities related to Maryland franchise law as a condition of these actions.
These stipulations provide added protection to franchisees in Minnesota and Maryland, ensuring certain rights are upheld and limiting the obligations they must meet, particularly concerning releases and legal proceedings. Prospective franchisees should carefully review any state-specific addenda to understand how local laws may modify the standard franchise agreement.