Is Spray Net obligated to operate the franchised business on behalf of an incapacitated franchisee during or after the 180-day period?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
rporate or limited liability company Franchisee's obligations to Franchisor and Franchisor's affiliates; and (ii) such person successfully completes Franchisor's training program (which Franchisor will provide at Franchisor's thencurrent tuition rate). Such assignment by operation of law will not be deemed in violation of this Agreement, provided such heirs or legatees accept the conditions imposed by the Franchise Agreement and are acceptable to Franchisor.
-
- Franchisor is under no obligation to operate the Franchised Business, or incur any obligation on behalf of any incapacitated franchisee, during or after the 180 Day Period. If necessary, Franchisee (or Franchisee's legal representative, as applicable) shall appoint a previously approved acting interim manager to operate the Franchised Business during the 180 Day Period. In the event of Franchisee's death, disability, absence or otherwise, Franchisor may (but is not required to) operate the Franchised Business on Franchisee's behalf and at Franchisee's expense for such period of time (and under such terms and conditions) as Franchisor determines, including paying out the assets and/or revenues of the Franchised Business to cover any or all past, current and/or future obligations of the Franchised Business (including any amounts owed to Franchisor and/or any affiliate) in such priorities as Franchisor determines in Franchisor's sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Spray Net is not obligated to operate the franchised business on behalf of an incapacitated franchisee during or after a 180-day period. However, in the event of the franchisee's death, disability, absence, or incapacitation, Spray Net has the option, but is not required, to operate the Spray Net franchised business on the franchisee's behalf and at the franchisee's expense.
If Spray Net chooses to operate the business, it can do so for a period of time and under terms and conditions that Spray Net determines. This includes using the assets and/or revenues of the franchised business to cover any past, current, or future obligations of the business, including amounts owed to Spray Net or its affiliates. Spray Net has the sole discretion to determine the priorities of these obligations.
Spray Net can also pay itself a reasonable amount to cover management services and other costs incurred while operating the business. Furthermore, Spray Net may seek court or arbitrator approval for these arrangements, with the legal fees and costs associated with obtaining such approval charged against the assets and/or revenues of the franchised business. The franchisee (or their estate) is required to indemnify Spray Net against any costs or liabilities incurred in connection with the operation of the franchised business.