Does the Spray Net franchisee's obligation to indemnify the franchisor continue after the franchise agreement expires or terminates?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event Franchisee or its personnel saves or prints out a hard copy of any Manual, then such electronic/hard versions of said Manuals must be immediately returned upon expiration or termination of this Agreement for any reason (and never used for any competitive purpose).
The provisions of this Section shall survive the term of this Agreement
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the franchisee's obligation to return the manuals continues after the termination or expiration of the franchise agreement. Specifically, if a Spray Net franchisee or its personnel saves or prints a hard copy of any manual, these copies must be returned upon expiration or termination of the agreement for any reason. These copies cannot be used for any competitive purpose.
This obligation is explicitly stated to survive the term of the agreement. This means that even after the franchise agreement ends, whether through expiration or termination, the franchisee remains responsible for returning all electronic and hard copies of the Spray Net manuals.
This is a fairly standard clause in franchise agreements. Franchisors want to protect their proprietary information and prevent former franchisees from using it to compete against the system. For a prospective Spray Net franchisee, this means being diligent about managing and returning all manual copies upon the agreement's end to avoid potential legal issues.