Who is required to sign the Confidentiality and Restrictive Covenant Agreement for a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
nsent, copy, scan, duplicate, record, distribute, disseminate, or otherwise make the Manuals available to any unauthorized person or entity, in whole or in part.
- H. Prevention of Unauthorized Use or Disclosure. Franchisee shall adopt and implement all reasonable procedures as Franchisor may prescribe from time to time to prevent the unauthorized use or disclosure of any of the Confidential Information. Franchisee must ensure and require that all of its officers, agents, directors, shareholders, trustees, beneficiaries, partners, employees, and independent contractors who may obtain or who
are likely to obtain knowledge concerning the Confidential Information (collectively, "Restricted Persons") execute Franchisor's prescribed form of confidentiality agreement that will be in substantially the same form attached to this Agreement as Exhibit E (the "Confidentiality and Restrictive Covenant Agreement"). Franchisee must obtain a signed copy of the Confidentiality and Restrictive Covenant Agreement from any such person prior to, or at the same time of, that person undertaking its role and/or employment or association with Franchisee or the Franchised Business. Franchisee's spouse or significant other shall also be bound by the same requirement and shall sign the same Confidentiality and Restrictive Covenant Agreement. Franchisee must provide Franchisor with a copy of each signed Confidentiality and Restrictive Covenant Agreement within ten (10) days of Franchisor's request.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the franchisee must ensure that all officers, agents, directors, shareholders, trustees, beneficiaries, partners, employees, and independent contractors who may obtain knowledge of confidential information, defined as "Restricted Persons", execute the Confidentiality and Restrictive Covenant Agreement. This agreement is in the form attached as Exhibit E to the Franchise Agreement.
The franchisee is responsible for obtaining a signed copy of this agreement from each Restricted Person before or at the time they begin their role or association with the Spray Net franchised business. The franchisee's spouse or significant other is also required to sign the same Confidentiality and Restrictive Covenant Agreement.
The franchisee must provide Spray Net with a copy of each signed agreement within ten days of the franchisor's request. If the franchisee fails to provide a signed form within this period and cannot rectify the breach, Spray Net reserves the right to charge a penalty fee of $1,000, in addition to any other remedies available under the agreement or applicable law. This highlights the importance of ensuring all relevant parties comply with the confidentiality requirements to avoid potential penalties and legal issues.