Can a Spray Net franchisee terminate the Franchise Agreement?

According to Spray Net's 2025 Franchise Disclosure Document, a franchisee's ability to terminate the Franchise Agreement is limited and subject to specific conditions. The FDD outlines several scenarios where Spray Net can terminate the agreement with notice but without an opportunity for the franchisee to cure the default. These include instances of fraud or misrepresentation in establishing or operating the franchised business, failure to attend and complete the Initial Training Program, receiving three or more notices to cure the same or similar defaults within a 12-month period, violating the in-term restrictive covenant, misusing proprietary marks or confidential information, misusing proprietary software, defaulting under any other agreement with Spray Net or its affiliates, defaulting under the lease, failing to open the franchised business in the required time, abandoning the franchised business, being convicted of a felony or other crime that adversely affects the system, taking assets or property of the franchised business for personal use for any competitive or other commercial use, having insufficient funds in the Payment Account three or more times in any 12-month period, committing repeated violations of applicable laws, or failing to comply with standards and specifications in the Spray-Net Operations Manual on three or more occasions during any 18-month period, regardless of whether these failures were timely cured.

Additionally, the Franchise Agreement may be terminated under certain conditions outlined in Section 15(B), such as making a general assignment for the benefit of creditors, filing a bankruptcy petition (either by or against the franchisee) that is not dismissed within 30 days, the filing of a bill in equity or appointment of receivership, the appointment of a receiver or custodian of the franchisee's assets, a final judgment of $10,000 or more entered against the franchisee that is not satisfied within 60 days (unless Spray Net consents to a longer period), or attempting an invalid transfer in violation of Section 13 of the Franchise Agreement.

Upon termination or early expiration of the Franchise Agreement, the franchisee has several obligations, including ceasing operation of the Franchised Business, returning the Spray-Net Operations Manual and any other Confidential Information, assigning approved service contracts, telephone/fax numbers and domain names to Spray Net, ceasing the use of Proprietary Marks and trade dress, complying with all post-term restrictive covenants, paying any amounts owed to Spray Net and its Approved Suppliers, and providing written confirmation of compliance with these obligations within 30 days. Furthermore, the franchisee must cancel or, at Spray Net's option, assign all telephone/facsimile numbers and domain names to Spray Net.