Can the Spray Net franchisor's affiliates also have ownership rights to the Proprietary Marks?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges the ownership and/or right to use the Proprietary Marks is vested by Franchisor and/or its affiliates/principal, and Franchisee agrees that during the term of this Agreement and after its expiration or termination Franchisee will not directly or indirectly contest or aid in contesting the validity of the Proprietary Marks or the ownership or rights of the Proprietary Marks by Franchisor.
Furthermore, Franchisee intends and hereby concedes that any commercial use Franchisee may make of the Proprietary Marks shall contribute and inure to the commercial use and benefit of Franchisor, which Franchisor may claim to strengthen and further secure ownership of the Proprietary Marks.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the ownership and/or right to use the Proprietary Marks is vested by Spray-Net and/or its affiliates/principal. As a Spray Net franchisee, you acknowledge that during the term of the agreement and after its expiration or termination, you will not directly or indirectly contest or aid in contesting the validity of the Proprietary Marks or the ownership or rights of the Proprietary Marks by Spray Net.
Spray Net emphasizes that any commercial use of the Proprietary Marks by the franchisee will contribute to the commercial use and benefit of Spray Net, which Spray Net may claim to strengthen and further secure ownership of the Proprietary Marks. This clause ensures that any goodwill generated through the franchisee's use of the marks ultimately benefits Spray Net.
This section of the FDD clarifies that while franchisees are granted the right to use Spray Net's Proprietary Marks, the ownership and ultimate control of these marks remain with Spray Net and its affiliates. Franchisees should be aware that their use of the marks is a licensed privilege, not a right of ownership, and that they must adhere to Spray Net's standards and guidelines to protect the integrity and value of the brand.