Does the Spray Net franchisee have the right to use the Proprietary Marks after the termination of the franchise 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's right to use Spray Net's Proprietary Marks is limited to the term of the franchise agreement. After the agreement expires or is terminated, the franchisee must not directly or indirectly infringe upon or contest the validity or ownership of Spray Net's Proprietary Marks. This includes refraining from any action that could harm Spray Net's rights to those marks.
This means that upon termination of the franchise agreement, the franchisee loses all rights to use the Spray Net name, logos, and other associated trademarks. This is a standard clause in most franchise agreements, designed to protect the brand's identity and goodwill. The franchisee cannot operate a similar business using a name or branding that is confusingly similar to Spray Net.
The franchisee acknowledges that any commercial use of the Proprietary Marks benefits Spray Net, reinforcing its ownership. The franchisee also agrees not to use the Proprietary Marks in any way that could make Spray Net liable without prior written consent. This includes not using the marks as part of the franchisee's corporate or business name, domain name, email address, or social media profiles.
These restrictions are in place to ensure that the Spray Net brand remains consistent and protected, even after a franchise agreement ends. Franchisees must be aware that their rights to use the brand's intellectual property are strictly limited to the duration of their agreement and within the scope defined by Spray Net.