Who owns the Proprietary Marks, System, and Manuals provided to a Spray Net franchisee?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the Proprietary Marks, System, Manuals, and all other information and items delivered to Franchisee by Franchisor under this Agreement or in furtherance of the System, including without limitation, signage, video and audio tapes or disks, information communicated by electronic means, and intellectual property, are the sole and exclusive property of Franchisor, and Franchisee's right to use the same are contingent upon Franchisee's continued full and timely performance under this Agreement.
Franchisee acknowledges it acquires no rights, interests, or claims to any of said property, except for Franchisee's rights to use the same under this Agreement for the term hereof and strictly in the manner prescribed.
Franchisee agrees that it will not, during the term of this Agreement or any time
thereafter, contest or challenge the sole and exclusive proprietary rights of Franchisor (and, if appropriate, Franchisor's affiliates) to the Proprietary Marks, System, Manuals, and other information, intellectual property, and items delivered or provided or to which Franchisee obtains access under this Agreement, nor shall Franchisee claim any proprietary interest in such property. Franchisee agrees that it will not adopt, display, attempt to register or otherwise use any names, marks, insignias, or symbols in any business that are or may be confusingly similar to the Proprietary Marks licensed under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the Proprietary Marks, System, and Manuals are the sole and exclusive property of the Franchisor. This means that while a franchisee has the right to use these items under the terms of the franchise agreement, they do not own them. The franchisee's right to use these items is contingent upon their full and timely performance under the agreement.
Spray Net franchisees acknowledge that they acquire no rights, interests, or claims to any of the franchisor's property, except for the right to use them during the term of the agreement and strictly in the manner prescribed. This is a standard arrangement in franchising, where the franchisor retains ownership of its intellectual property to ensure consistency and protect the brand.
Furthermore, franchisees agree not to contest or challenge the franchisor's proprietary rights to the Proprietary Marks, System, and Manuals, or claim any proprietary interest in such property, during or after the term of the agreement. They also agree not to use any names, marks, insignias, or symbols that are confusingly similar to the Proprietary Marks licensed under the agreement. This provision is designed to protect Spray Net's brand identity and prevent franchisees from creating competing businesses using similar branding after the franchise agreement ends.