What is the Spray Net franchisee's obligation regarding Confidential Information upon termination or expiration and non-renewal of the Franchise Agreement?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
information even after I cease to be in that position unless I can demonstrate that such information has become generally known or easily accessible other than by the breach of an obligation of Franchisee under the Franchise Agreement.
I will surrender any material containing some or all of the Confidential Information to the Company, upon request, or upon conclusion of the use for which the information or material may have been furnished.
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, franchisees have specific obligations regarding confidential information, even after their franchise agreement concludes. An individual associated with the franchisee must maintain the confidentiality of Spray Net's proprietary information, even after they are no longer in their position, unless the information becomes publicly known through means other than a breach of the Franchise Agreement.
Upon request or at the conclusion of the information's intended use, the franchisee must surrender any material containing confidential information to Spray Net. This obligation ensures that sensitive business data, strategies, and other non-public information remain protected, preventing its potential misuse by former franchisees or their associates.
These confidentiality obligations are further reinforced by the requirement that electronic or hard copies of the manuals must be returned upon the expiration or termination of the agreement for any reason. These manuals cannot be used for any competitive purpose. This provision survives the term of the agreement, meaning that even after the franchise agreement ends, the franchisee is still bound by these confidentiality requirements.