What is the geographic scope of the post-term restrictive covenant for managers leaving a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
7.1 Post-Term Restrictive Covenant for Designated Manager of Franchised Business or Manager/Officers/Directors of Franchisee.
In the event I am a manager of the Franchised Business, or an officer/director/manager/partner of Franchisee that has not already executed a Personal Guaranty agreeing to be bound by the terms of the Franchise Agreement, then I further agree that I will not be involved in a Competing Business of any kind for a period of two years after the expiration or termination of my employment with Franchisee for any reason: (i) at or within a 60 mile radius of the Premises; or (ii) within a 60-mile radius of any other Franchised Business that exists at the time my employment with Franchisee ceases through the date of my involvement with the Competing Business.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a post-term restrictive covenant applies to managers of a franchised business, or officers/directors/managers/partners of the franchisee who have not already executed a personal guaranty. This covenant restricts their involvement in a Competing Business for two years after their employment with the Spray Net franchisee ends.
The geographic scope of this restriction includes two specific areas. First, it applies at or within a 60-mile radius of the physical location of the Spray Net franchise (the Premises). Second, it extends to a 60-mile radius of any other Spray Net franchised business that is operating at the time the manager's employment ends, continuing through the date of their involvement with the Competing Business.
This means a former manager is restricted from working for or owning a competing business within these defined areas. This restriction aims to protect Spray Net's market and franchise network by preventing former managers from using their knowledge and experience gained while with Spray Net to benefit a competitor in the same geographic areas where Spray Net operates. Prospective franchisees should be aware of these limitations for their managers and understand the potential impact on staffing and future business opportunities for those individuals.