Are the Spray Net Manuals considered trade secrets and confidential information?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
mes, and that Franchisee will be responsible for the dayto-day operation thereof.
- C. Confidential Information. In connection with the operation of the Franchised Business, Franchisee will from time to time become acquainted with, work with, and even generate certain information, procedures, techniques, data, and materials that are and, by this Agreement, will become proprietary to Franchisor. Franchisee and all persons signing this Agreement agree to keep confidential any of Franchisor's trade secrets or proprietary information as defined below and will not use such for its or their own purpose or supply or divulge same to any person, firm, association, or corporation except as reasonably necessary to operate the Franchised Business. Franchisee agrees that it will have no proprietary interest in any work product developed or used by it that arises out of the operation of the Franchised Business. Franchisee will, from time to time as may be requested by Franchisor, do all things that may be necessary to establish or document Franchisor's ownership of any such work product, including without limitation, the execution of assignments.
- D. Trade Secrets and Confidential Information. The confidentiality requirements set forth in the preceding paragraph will remain in full force and effect during the term of this Agreement and in perpetuity after its termination or expiration and non-renewal. Franchisor's trade secrets and proprietary/confidential information include the following:
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- The Manuals;
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Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the manuals provided to franchisees are considered trade secrets and confidential information. Franchisees are required to keep confidential any of Spray Net's trade secrets or proprietary information, which includes the manuals, and they cannot use this information for their own purposes or share it with others, except when necessary to operate the franchised business. This obligation extends both during the term of the Franchise Agreement and indefinitely after its termination or expiration.
Spray Net may provide supplements, updates, or revisions to the manuals through various electronic or traditional mediums, such as the Internet, email, or a system-wide intranet/extranet. Franchisees must comply with these updates. If a franchisee creates a hard copy or electronic version of any manual, it must be returned upon the expiration or termination of the agreement and cannot be used for competitive purposes.
This classification of the manuals as trade secrets has significant implications for a prospective Spray Net franchisee. It means that the franchisee has a legal obligation to protect the confidentiality of the manuals and to prevent unauthorized access or use. Failure to comply with these confidentiality requirements could result in legal action from Spray Net. The franchisee's responsibility to safeguard this information persists even after the franchise agreement ends, preventing them from using the knowledge gained to start a competing business.