Does a Spray Net franchisee receive compensation for improvements related to the franchised business that they develop and that are owned by the franchisor?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
vulge such Confidential Information only to your employees who must have access to it in order to perform their employment obligations.
The Franchise Agreement provides that if you, your employees, or principals develop any inventions, discoveries, and improvements, whether or not patentable or copyrightable, that are conceived or made by you or your employees or agents that are in any way related to the establishment or operation of the Franchised Business (collectively, the "Improvements"), you must disclose those Improvements to us and all such Improvements will automatically and without further action be owned by us without compensation to you (including all intellectual property rights therein). Whenever requested to do so by us, you will execute any and all applications, assignments, or other instruments that we may deem necessary to apply for and obtain intellectual property protection or to otherwise protect our interest therein. These obligations shall continue beyond the termination or expiration of this Agreement.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 53–55)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, any inventions, discoveries, or improvements related to the franchised business developed by a franchisee, their employees, or principals automatically become the property of Spray Net without any compensation to the franchisee. This includes all intellectual property rights associated with those improvements. This obligation extends beyond the termination or expiration of the Franchise Agreement.
Spray Net requires franchisees to disclose any such improvements and to execute any documents necessary for Spray Net to obtain intellectual property protection. If, for any reason, Spray Net cannot automatically own the improvements, the franchisee agrees to grant Spray Net a perpetual, royalty-free worldwide license to use and sublicense the improvements.
This is a significant point for potential Spray Net franchisees. It means that any innovation or improvement a franchisee develops for the Spray Net system becomes the property of the franchisor without any financial benefit to the franchisee. While it's common for franchisors to own intellectual property related to the franchise system, the lack of compensation for franchisee-developed improvements is something prospective franchisees should carefully consider. Franchisees may want to discuss this with Spray Net to understand the potential for recognition or other non-financial benefits for their contributions.