What happens if a Spray Net franchisee defaults under the lease for the Premises?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee defaults under the lease for the Premises and does not cure within the prescribed period of time thereunder, or if Franchisee otherwise loses its right to possess and control the Premises to operate the Franchised Business at any time during the term of this Agreement (except in cases of force majeure and cases where Franchisor has previously approved Franchisee's relocation request and Franchisee timely relocates);
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, if a franchisee defaults under the lease for their business premises and fails to correct the default within the time frame specified in the lease, Spray Net has grounds to terminate the franchise agreement. However, this is subject to force majeure events or previously approved relocation requests.
Specifically, Spray Net can terminate the agreement if the franchisee loses the right to possess and control the premises at any time during the term of the agreement. This clause ensures that Spray Net franchisees maintain a stable location from which to operate, as the physical location is crucial for serving customers within their designated territory.
This provision protects Spray Net by ensuring franchisees meet their lease obligations, which is vital for business continuity. Prospective franchisees should carefully review lease terms and conditions, and understand their obligations to avoid potential default and subsequent termination of their franchise agreement. Franchisees should also communicate proactively with Spray Net regarding any potential relocation needs to ensure compliance with the agreement.