If a Spray Net franchisee develops an invention related to the franchised business, what is the franchisee obligated to do?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
vulge such Confidential Information only to your employees who must have access to it in order to perform their employment obligations.
The Franchise Agreement provides that if you, your employees, or principals develop any inventions, discoveries, and improvements, whether or not patentable or copyrightable, that are conceived or made by you or your employees or agents that are in any way related to the establishment or operation of the Franchised Business (collectively, the "Improvements"), you must disclose those Improvements to us and all such Improvements will automatically and without further action be owned by us without compensation to you (including all intellectual property rights therein). Whenever requested to do so by us, you will execute any and all applications, assignments, or other instruments that we may deem necessary to apply for and obtain intellectual property protection or to otherwise protect our interest therein. These obligations shall continue beyond the termination or expiration of this Agreement.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 53–55)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, if a franchisee, their employees, or principals develop any inventions, discoveries, or improvements related to the Spray Net franchised business, the franchisee is obligated to disclose these improvements to Spray Net. These improvements, whether patentable or copyrightable, automatically become the property of Spray Net without any compensation to the franchisee. This includes all intellectual property rights associated with the improvements.
Spray Net may request the franchisee to execute applications, assignments, or other instruments necessary for Spray Net to obtain intellectual property protection or otherwise protect its interest in the improvements. This obligation extends beyond the termination or expiration of the Franchise Agreement.
In the event that a court determines that Spray Net cannot automatically own certain improvements developed by the franchisee, the franchisee agrees to grant Spray Net a perpetual, royalty-free worldwide license to use and sublicense others to use such improvements. This ensures that Spray Net retains the right to utilize any advancements made related to the franchised business, even if full ownership is not possible.