What is the required procedure for resolving disputes related to the Spray Net franchise agreement before pursuing legal action?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Any notice complying with the provisions hereof will be deemed delivered at the earlier of: (i) three (2) days after mailing; or (ii) the actual date of delivery or receipt (as evidenced by the courier). Each party shall have the right to designate any other address for such notices by providing the other party(ies) with written notice thereof at the addresses above, and in such event, all notices to be mailed after receipt of such notice shall be sent to such other address.
21. GOVERNING LAW AND DISPUTE RESOLUTION
A. Governing Law. This Agreement shall be governed by and construed in accordance with
©2025 Spray-Net Inc. 2025 Spray-Net Inc. 57
the laws of the State of Delaware, without reference to this state's conflict of laws principles.
B. Internal Dispute Resolution.
Franchisee must first bring any claim or dispute between Franchisee and Franchisor to Franchisor's management, after providing notice as set forth in Section 21(G) of this Agreement, and make every effort to resolve the dispute internally.
Franchisee must exhaust this internal dispute resolution procedure before Franchisee may bring Franchisee's dispute before a third party.
This agreement to first attempt resolution of disputes internally shall survive termination or expiration of this Agreement.
- C. Mediation.
At Franchisor's option, all claims or disputes between Franchisee and Franchisor (or its affiliates) arising out of, or in any way relating to, this Agreement or any other agreement by and between Franchisee and Franchisor (or its affiliates), or any of the parties' respective rights and obligations arising from such agreement, which are not first resolved through the internal dispute resolution procedure sent forth in Section 21(B) above, will be submitted first to mediation to
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees are first required to attempt internal dispute resolution before pursuing any third-party legal action. Specifically, a franchisee must bring any claim or dispute to Spray Net's management, after providing written notice as outlined in Section 21(G) of the agreement, and make a substantial effort to resolve the issue internally.
This initial step of internal dispute resolution must be exhausted before a franchisee can escalate the dispute to a third party, such as through mediation or litigation. This requirement to attempt internal resolution first remains in effect even after the termination or expiration of the franchise agreement.
Following the internal dispute resolution, Spray Net has the option to require mediation for any unresolved claims or disputes. This mediation process would involve claims arising from the franchise agreement or any other agreements between the franchisee and Spray Net, or their respective rights and obligations. The FDD does not specify who would conduct the mediation or bear the costs, but it is a common practice in franchising for both parties to share mediation costs. Franchisees should clarify these details with Spray Net before signing the agreement.