What is the post-term restrictive covenant for a designated manager of a Spray Net franchised business?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event I am a manager of the Franchised Business, or an officer/director/manager/partner of Franchisee that has not already executed a Personal Guaranty agreeing to be bound by the terms of the Franchise Agreement, then I further agree that I will not be involved in a Competing Business of any kind for a period of two years after the expiration or termination of my employment with Franchisee for any reason: (i) at or within a 60 mile radius of the Premises; or (ii) within a 60-mile radius of any other Franchised Business that exists at the time my employment with Franchisee ceases through the date of my involvement with the Competing Business.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a designated manager of a Spray Net franchised business, or an officer/director/manager/partner of the franchisee who has not executed a personal guaranty, is subject to a post-term restrictive covenant. This covenant restricts their involvement in a Competing Business for a period of two years after their employment with the franchisee ends, regardless of the reason for termination.
The restriction applies within a 60-mile radius of the Spray Net franchise premises and within a 60-mile radius of any other Spray Net franchised business that exists when their employment ceases through the date of their involvement with the competing business. This means a manager cannot work for or own a competing painting service business within these defined areas for two years after leaving the Spray Net franchise.
This post-term covenant aims to protect Spray Net's business interests by preventing former managers from using their knowledge and experience gained while working for a Spray Net franchise to benefit a competing business in the same geographic area. This restriction is in place regardless of whether the manager leaves voluntarily or is terminated. Prospective franchisees should ensure that any managers they hire are aware of and willing to agree to these restrictions, as it could impact their future employment options in the painting services industry.