What is the Spray Net franchisee's obligation regarding the goodwill of the Proprietary Marks?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties agree and acknowledge that Franchisor has established substantial goodwill and business value in its Proprietary Marks, expertise, and System.
- E. Franchisee recognizes the benefits derived from being identified with Franchisor, appreciates and acknowledges the distinctive and valuable significance to the public of the System and the Proprietary Marks, and understands and acknowledges the importance of Franchisor's high and uniform standards of quality, appearance, and service to the value of the System.
Maintain and display signage and advertising bearing the Proprietary Marks that reflects the current commercial image of the System and, upon notice from Franchisor, to immediately discard and cease use of Proprietary Marks or other imagery that has become obsolete and no longer authorized by Franchisor.
Divert or attempt to divert business or customers of any Franchisee-owned Franchised Businesses to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or
indirectly, any other act injurious or prejudicial to the goodwill associated with the Proprietary Marks or the System.
- L. Notification of Infringement.
Franchisee shall notify Franchisor within three (3) calendar days of any suspected infringement of, or challenge to, the validity of the ownership of, or Franchisor's right to use, the Proprietary Marks licensed hereunder.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees play a crucial role in protecting the goodwill associated with the company's Proprietary Marks. Franchisees must recognize the value of being associated with Spray Net and acknowledge the importance of maintaining the brand's uniform standards of quality, appearance, and service. This recognition is essential for preserving the brand's reputation and value in the eyes of the public. Franchisees must also acknowledge that Spray Net has established substantial goodwill and business value in its Proprietary Marks, expertise, and System.
To uphold the brand's image, Spray Net franchisees are required to maintain and display signage and advertising that reflects the current commercial image of the Spray Net system. They must also discard and cease using any Proprietary Marks or imagery that the company deems obsolete or unauthorized. Franchisees are prohibited from taking any actions that could harm the goodwill associated with the Proprietary Marks or the Spray Net system. This includes refraining from diverting business or customers to competitors or engaging in any activity that could be detrimental to the brand's reputation.
Furthermore, franchisees must promptly notify Spray Net of any suspected infringement or challenges to the validity or ownership of the Proprietary Marks. They are required to cooperate with Spray Net in any legal proceedings related to the Proprietary Marks, including executing necessary documents and providing assistance as needed. By adhering to these obligations, Spray Net franchisees contribute to the overall protection and enhancement of the brand's goodwill, which is vital for the success of both the individual franchise and the entire Spray Net system.