Can Spray Net grant licenses to others to use the proprietary marks and system?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
scretion as to whether it decides to grant Franchisee the right to open any additional Franchised Businesses, each of which will be governed by a separate form of Franchisor's then-current franchise agreement.
- E. Reservation of Rights. Notwithstanding anything contained in this Agreement, Franchisor and its affiliates hereby reserve the exclusive right to: (i) own and operate franchised businesses at any location(s) outside of the Designated Territory under the Proprietary Marks, or to license others the right to own and operate Spray-Net businesses at any location(s) outside of the Designated Territory under the Proprietary Marks and System; (ii) the right to own and operate businesses under different marks at any location(s) inside
or outside of the Designated Territory, or license to others the right to own and operate such businesses, under different marks at any location(s) inside or outside of the Designated Territory (such businesses will not primarily provide painting products and services); (iii) use the Proprietary Marks and System in connection with services and products, promotional and marketing efforts, or related items, or in alternative channels of distribution, including the sale of any Spray-Net products in wholesale and retail stores, via the Internet, and through mail order catalog, without regard to location;
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Spray Net retains the right to grant licenses to others to use their proprietary marks and system. Specifically, Spray Net reserves the exclusive right to license others to operate Spray-Net businesses outside of a franchisee's designated territory. This means that while a franchisee is granted rights within their specific territory, Spray Net can authorize other entities to operate under the same brand in different locations.
This reservation of rights also extends to Spray Net's ability to operate businesses under different marks, or license others to do so, both inside and outside a franchisee's designated territory, provided these businesses do not primarily offer painting products and services. Additionally, Spray Net can use the proprietary marks and system in connection with services, products, promotional efforts, or alternative channels of distribution, such as online sales or wholesale, without regard to a franchisee's location.
For a prospective Spray Net franchisee, this means that Spray Net retains significant control over the brand and its expansion. While franchisees have exclusive rights within their territory, Spray Net can explore other avenues for growth, including licensing the brand to others in different areas or through different channels. Franchisees should be aware that Spray Net's strategic decisions regarding brand expansion and licensing could potentially impact their business, although their primary territory is protected.