Must the original Spray Net franchisee comply with post-termination provisions after a transfer?

According to Spray Net's 2025 Franchise Disclosure Document, a franchisee (and their principals/guarantors, if applicable) must comply with the post-termination provisions of the Franchise Agreement, even after a transfer of the franchise. This means that even after selling the franchise to a new owner, the original franchisee remains bound by certain restrictions and obligations that continue after the franchise agreement is no longer in effect.

These post-termination provisions typically include covenants not to compete, which restrict the franchisee from engaging in similar businesses within a specified geographic area and time frame after the franchise agreement ends. They may also include obligations related to confidentiality, non-disclosure, and indemnification, ensuring that the franchisee protects Spray Net's proprietary information and trademarks, even after they are no longer part of the franchise system.

For a prospective Spray Net franchisee, this means that selling the franchise does not completely release them from all obligations. They must carefully review the post-termination provisions in the franchise agreement to understand the extent of their continuing responsibilities and restrictions. This is a crucial consideration when planning an exit strategy or considering the long-term implications of owning a Spray Net franchise.