If a Spray Net franchisee's owner/principal commits a misrepresentation in the operation of the franchised business, is there an opportunity to cure?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's failure to comply with any of Franchisor's other System standards and specifications in the operation of the Franchised Business as set forth in the Manuals; and (ii) fails to cure such breach or violation within thirty (30) days of the date Franchisee is provided with notice thereof by Franchisor.
- D. Loss of Designated Territory.
Notwithstanding the foregoing, if Franchisee is in default of this Agreement under Section 6(Z), Franchisor may, in its sole discretion and as an alternative to terminating this Agreement, elect to reduce the size of Franchisee's Designated Territory and own and operate, or license another to operate, additional Spray-Net businesses in the Designated Territory.
In the event Franchisor elects to reduce Franchisee's Designated Territory and/or terminate Franchisee's exclusive rights therein, Franchisor will provide Franchisee with written notice thereof.
Upon receipt of such notice, Franchisee will have ten (10) calendar days to execute an addendum to this Agreement detailing the revised boundaries of the Designated Territory and/or termination of exclusive rights therein.
If Franchisee does not execute this Addendum with the prescribed time period, then Franchisor may, at its option, immediate terminate this Agreement upon notice to Franchisee.
- E. Step-In Rights.
In addition to Franchisor's right to terminate this Agreement, and not in lieu of such right or any other rights hereunder, if this Agreement is subject to termination due to Franchisee's failure to cure any default within the applicable time period (if any), then Franchisor has the right, but not the obligations, to enter the Premises and exercise complete authority with respect to the operation of the Franchised Business until such time that Franchisor determines, in its reasonable discretion, that the default(s) at issue have been cured and that Franchisee is otherwise in compliance with the terms of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
Based on the 2025 Spray Net Franchise Disclosure Document, if a Spray Net franchisee fails to comply with the System standards and specifications, they have an opportunity to cure the breach. The franchisee has thirty (30) days to cure the violation after receiving notice from Spray Net.
However, if the franchisee is in default under Section 6(Z) of the agreement, Spray Net has the option to reduce the size of the franchisee's designated territory instead of terminating the agreement. In this case, Spray Net will provide written notice, and the franchisee has ten (10) calendar days to execute an addendum detailing the revised territory boundaries. If the franchisee fails to execute the addendum within the specified time, Spray Net can immediately terminate the agreement.
Additionally, if the agreement is subject to termination due to the franchisee's failure to cure any default within the applicable time period, Spray Net has the right to enter the premises and take control of the franchised business until the defaults are cured and the franchisee is in compliance with the agreement. It is important to note that the excerpt does not specifically address misrepresentation, so a prospective franchisee should seek clarification from Spray Net regarding the specific consequences and cure options for misrepresentation in the operation of the franchised business.