Does the internal dispute resolution agreement for Spray Net survive the termination or expiration of the Franchise Agreement?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
This agreement to first attempt resolution of disputes internally shall survive termination or expiration of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the agreement to first attempt internal resolution of disputes with Spray Net survives the termination or expiration of the Franchise Agreement. This means that even after the franchise agreement ends, a franchisee is still obligated to try to resolve any disputes with Spray Net internally before pursuing other avenues such as mediation or legal action.
This requirement to engage in internal dispute resolution even after the franchise term has ended could impact a franchisee by potentially delaying or complicating the resolution of post-termination disputes. Franchisees need to be aware that they cannot immediately resort to third-party dispute resolution methods after the agreement ends; they must first go through Spray Net's internal processes.
While the FDD specifies that internal dispute resolution survives termination, it also mentions that mediation is at Spray Net's option. This means that Spray Net can choose whether or not to engage in mediation, even after the internal dispute resolution process has been exhausted. A franchisee should consider the potential implications of this clause, as it gives Spray Net significant control over the dispute resolution process.