What relief is Spray Net entitled to obtain in court for a franchisee's violation of certain provisions?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
attempt to mediate a controversy, dispute, or claim through mediation as set forth in this Section 21(C) if such controversy, dispute, or claim concerns an allegation that a party has violated (or threatens to violate, or poses an imminent risk of violating): (i) any federally protected intellectual property rights in the Proprietary Marks, the System, or in any Confidential Information or other confidential information; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under this Agreement.
- D. Injunctive Relief. Franchisee acknowledges and agrees that irreparable harm could be caused to Franchisor by Franchisee's violation of certain provisions of this Agreement and, as such, in addition to any other relief available at law or equity, Franchisor shall be entitled to obtain in any court of competent jurisdiction, without bond, restraining orders or temporary or permanent injunctions in order to enforce, among other items, the provisions of this Agreement relating to: (i) Franchisee's use of the Proprietary Marks and Confidential Information (including any proprietary software used in connection with the Franchised Business); (ii) the in-term covenant not to compete, as well as any other violations of the restrictive covenants set forth in this Agreement; (iii) Franchisee's obligations on termination or expiration of this Agreement; (iv) disputes and controversies based on or arising under the Lanham Act, or otherwise involving the Proprietary Marks,
as now or hereafter amended;
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 entitled to seek specific types of relief in court if a franchisee violates certain provisions of the franchise agreement. Specifically, Spray Net can pursue restraining orders or temporary or permanent injunctions against a franchisee. The FDD states that Spray Net does not need to provide a bond to obtain these injunctions.
These injunctions can be obtained in any court of competent jurisdiction to enforce provisions related to the franchisee's use of Spray Net's proprietary marks and confidential information, including any proprietary software used in connection with the franchised business. Spray Net can also seek injunctions to enforce the in-term covenant not to compete, as well as any other violations of the restrictive covenants in the agreement, and the franchisee's obligations upon termination or expiration of the agreement.
Additionally, Spray Net can seek injunctive relief for disputes and controversies based on or arising under the Lanham Act, or otherwise involving the proprietary marks, and for disputes and controversies involving enforcement of Spray Net's rights with respect to confidentiality under the agreement. Spray Net can also obtain injunctions to prohibit any act or omission by the franchisee or its employees that constitutes a violation of applicable law, threatens Spray Net's franchise system, or threatens other franchisees of Spray Net.
The franchisee's only recourse if such an injunction is issued is to seek its dissolution, if appropriate, and the franchisee waives all damage claims if the injunction is wrongfully issued. This means that a Spray Net franchisee facing an injunction has limited options for recourse and cannot claim damages even if the injunction is later found to be unjustified.