How long does Spray Net have to accept or reject the offer of first refusal?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall obtain from the third party and provide Franchisor a statement in writing, signed by the third party and Franchisee, of the terms of the offer ("Letter of Intent").
If Franchisor elects not to accept the offer within a thirty (30) day period, Franchisee shall have a period not to exceed sixty (60) days to complete the transfer described in the Letter of Intent subject to the conditions for approval set forth in Section 13(E) of this Agreement.
Franchisee shall effect no other sale or transfer as contemplated under the Letter of Intent without first complying with this Section.
Any material change in the terms of the offer will be deemed a new proposal subject to Franchisor's right of first refusal.
So long as Franchisee has obtained Franchisor's prior written consent, which shall not be unreasonably withheld, a transfer to an existing partner or shareholder, or a transfer as a result of the death, disability or incapacitation of a shareholder or partner, in accordance with the provisions set forth below, is not subject to Franchisor's first right of refusal.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, if a franchisee wants to transfer their franchise, they must first provide Spray Net with a written statement (Letter of Intent) containing the terms of the offer from the third party. Spray Net then has thirty (30) days to either accept or reject this offer.
If Spray Net decides not to accept the offer within the 30-day period, the franchisee has up to sixty (60) days to complete the transfer, provided they meet the conditions for approval outlined in Section 13(E) of the Franchise Agreement. The franchisee cannot proceed with any other sale or transfer without first complying with these right of first refusal terms.
It's important to note that any material change in the terms of the offer is considered a new proposal, which would then be subject to Spray Net's right of first refusal again, restarting the 30-day review period. Transfers to an existing partner or shareholder, or those resulting from death, disability, or incapacitation, are not subject to Spray Net's first right of refusal, provided the franchisee obtains Spray Net's prior written consent, which will not be unreasonably withheld.