What is the Spray Net franchisee prohibited from doing regarding the Proprietary Marks after the expiration or termination of the agreement?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, a franchisee is prohibited from contesting or challenging Spray Net's proprietary rights to its Proprietary Marks, System, Manuals, and other intellectual property at any time after the agreement's term. The franchisee also cannot claim any proprietary interest in such property. This means that even after the franchise agreement ends, the franchisee cannot take any action that would undermine Spray Net's ownership and exclusive rights to its brand and operating system.
Furthermore, the franchisee is prohibited from adopting, displaying, attempting to register, or using any names, marks, insignias, or symbols in any business that are or may be confusingly similar to the Proprietary Marks licensed under the agreement. This restriction prevents former franchisees from creating a competing business that could be mistaken for a Spray Net franchise, thereby protecting the brand's identity and reputation.
These restrictions are typical in franchising to protect the franchisor's brand and system. Prospective Spray Net franchisees should understand that their rights to use the Proprietary Marks are limited to the term of the agreement and that they cannot use similar marks even after the agreement ends. This is a standard clause to prevent confusion in the marketplace and to protect the integrity of the Spray Net brand.