Is a Spray Net franchisee required to provide a copy of the executed Confidentiality and Restrictive Covenant Agreement to the franchisor?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
nsent, copy, scan, duplicate, record, distribute, disseminate, or otherwise make the Manuals available to any unauthorized person or entity, in whole or in part.
- H. Prevention of Unauthorized Use or Disclosure. Franchisee shall adopt and implement all reasonable procedures as Franchisor may prescribe from time to time to prevent the unauthorized use or disclosure of any of the Confidential Information. Franchisee must ensure and require that all of its officers, agents, directors, shareholders, trustees, beneficiaries, partners, employees, and independent contractors who may obtain or who
are likely to obtain knowledge concerning the Confidential Information (collectively, "Restricted Persons") execute Franchisor's prescribed form of confidentiality agreement that will be in substantially the same form attached to this Agreement as Exhibit E (the "Confidentiality and Restrictive Covenant Agreement"). Franchisee must obtain a signed copy of the Confidentiality and Restrictive Covenant Agreement from any such person prior to, or at the same time of, that person undertaking its role and/or employment or association with Franchisee or the Franchised Business. Franchisee's spouse or significant other shall also be bound by the same requirement and shall sign the same Confidentiality and Restrictive Covenant Agreement. Franchisee must provide Franchisor with a copy of each signed Confidentiality and Restrictive Covenant Agreement within ten (10) days of Franchisor's request.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees are required to ensure that all individuals associated with their business who may have access to confidential information, including officers, agents, directors, shareholders, employees, independent contractors, and even the franchisee's spouse or significant other, execute the Confidentiality and Restrictive Covenant Agreement. This agreement is in a form prescribed by Spray Net and attached as Exhibit E to the Franchise Agreement.
The franchisee must obtain a signed copy of this agreement from each of these individuals before or at the time they begin their role or association with the Spray Net franchise. The franchisee is then obligated to provide Spray Net with a copy of each signed agreement within ten days of Spray Net's request.
Failure to provide a signed form within the specified timeframe, and failure to rectify this breach, may result in Spray Net charging the franchisee a penalty fee of $1,000, in addition to any other legal remedies available to Spray Net. This requirement ensures that Spray Net can enforce confidentiality and protect its proprietary information across all levels of the franchise operation.