factual

As a franchisee of Spray Net, what rights do I acquire regarding the Confidential Information?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

hout limitation: (i) any indebtedness of Franchisee arising under or by virtue of the aforesaid Franchise Agreement; (ii) the prohibition of any change in the percentage of Franchisee owned, directly or indirectly, by any person, without first obtaining the written consent of Franchisor prior to said proposed transfer as set forth in the Franchise Agreement; (iii) those obligations related to confidentiality, non-disclosure and indemnification; and (iv) the in-term and post-term covenants against competition, as well as all other restrictive covenants set forth in the Franchise Agreement.

ARTICLE II CONFIDENTIALITY

During the initial and any renewal terms of the Franchise Agreement and this Guaranty, you will receive information, which Franchisor considers to be Confidential Information, trade secrets and/or confidential information, including without limitation: (i) site-selection criteria; (ii) methods, techniques and trade secrets for use in connection with the proprietary business operating system that Franchisor and its affiliates have developed (the "System")forthe establishment and operation of a SPRAY-NET business(each, an "Franchised Business") and/or franchise (each, a "Franchised Business"); (iii) marketing research and promotional, marketing and advertising programs for the Franchised Business; (iv) knowledge of specification for and suppliers of, certain products, fixtures, furnishings, equipment and inventory used at the Franchised Business (v) knowledge of the operating results and financial performance of other Franchised Businesses; (vi) customer communication and retention programs, along with data used or generated in connection with those programs; (vii) Franchisor's proprietary Manuals and other instructional manuals, as well as any training materials and information Franchisor has developed for use in connection with the System; (viii) information regarding the development of Franchisor's proprietary marks (the "Proprietary Marks"); (ix) information generated by, or used or developed in, an Franchised Business's

operation, including client names, properties and contracts of any kind, addresses, telephone numbers and related information and any other information contained in the Franchised Business's computer system or proprietary software system; (x) Franchisor's proprietary Manuals and other instructional manuals, as well as any training materials and information Franchisor has developed for use in connection with the System; as well as any other proprietary information or confidential information that is provided to Franchiseeby Franchisor during the term of the Franchise Agreement (collectively, "Confidential Information"). Youshall not, during the term of this Agreement or anytime thereafter, communicate, divulge, or use for the benefit of any other person, partnership, association, corporation, or limited liability company any Confidential Information and trade secrets, including, without limitation: Franchisor's copyrighted materials; price marketing mixes related to the Approved Services and Products (as defined in the FranchiseAgreement); standards and specifications for providing the Approved Services and Products and other merchandise or services offered or authorized for sale by System franchisees;

Source: Item 23 — RECEIPTS (FDD pages 75–219)

What This Means (2025 FDD)

According to Spray Net's 2025 Franchise Disclosure Document, as a franchisee, you will receive information that Spray Net considers confidential. This includes, but is not limited to, site-selection criteria, methods, techniques, and trade secrets related to their proprietary business operating system, marketing research, promotional and advertising programs, knowledge of specifications for suppliers, operating results and financial performance of other franchises, customer communication and retention programs, proprietary manuals, training materials, and information regarding the development of Spray Net's proprietary marks.

Spray Net may modify the System from time to time as it deems appropriate. The FDD states that while some information, in isolation, might be construed as public knowledge, the System as a whole contains significant proprietary and confidential information that makes it unique. The combined methods, information, procedures, and theories within the manuals are considered proprietary and confidential.

Even after you are no longer in a position with the Spray Net franchise, you must maintain the confidentiality of the information unless it becomes generally known or easily accessible through means other than a breach of your obligations under the Franchise Agreement. Upon request or conclusion of use, you must surrender any material containing confidential information to Spray Net. Unless approved in writing by Spray Net, you are prohibited from engaging in any competing business during your time as a franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.