Does the Spray Net non-compete agreement restrict the franchisee from soliciting employees of any other System franchisee after the Franchise Agreement expires?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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- During the Term of the Franchise Agreement and this Guaranty. During the term of the Franchise Agreement and this Personal Guaranty, each of the undersigned may not, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation:
- 1.2. Subject to and as permitted by applicable law, employ or seek to employ any person who is at that time employed by Franchisor, Franchisor's affiliates or any other System franchisee, or otherwise directly or indirectly induce or seek to induce such person to leave his or her employment thereat; or Divert or attempt to divert business or customers of any Franchisee-owned Franchised Businesses to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the non-compete agreement outlined in the franchise agreement does not explicitly prevent a franchisee from soliciting employees of other Spray Net franchisees after the termination or expiration of the agreement. However, during the term of the Franchise Agreement, the franchisee is restricted from employing or seeking to employ any person who is currently employed by Spray Net, its affiliates, or any other Spray Net franchisee. Additionally, franchisees are prohibited from inducing or attempting to induce such persons to leave their employment.
This restriction is in place to protect Spray Net's established network and prevent franchisees from poaching employees who have been trained and developed within the Spray Net system. This type of clause is common in franchise agreements to maintain stability and prevent unfair competition among franchisees.
After the agreement expires, the franchisee is not explicitly restricted from soliciting employees of other Spray Net franchisees. However, it is important to note that other clauses may indirectly affect this, such as non-compete clauses that prevent involvement with competing businesses within a certain geographic area. A prospective franchisee should seek clarification from Spray Net regarding any implicit restrictions on soliciting employees after the franchise agreement terminates to fully understand their obligations.