Does the requirement to attempt internal dispute resolution for Spray Net survive termination or expiration of the franchise agreement?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
This agreement to first attempt resolution of disputes internally shall survive termination or expiration of 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 agreement to first attempt internal dispute resolution survives the termination or expiration of the Franchise Agreement. This means that even after the franchise relationship ends, both Spray Net and the franchisee are still obligated to try to resolve any disputes internally before pursuing other avenues such as mediation or litigation.
This requirement to engage in internal dispute resolution after the franchise term has ended could have significant implications for a franchisee. It means that even after a franchisee has ceased operating under the Spray Net brand, they could still be required to engage in a dispute resolution process with the franchisor. This could involve time, legal expenses, and effort on the part of the franchisee, even after they have moved on from the business.
For a prospective Spray Net franchisee, this clause highlights the importance of maintaining a good relationship with the franchisor and understanding the dispute resolution process outlined in the franchise agreement. It also underscores the need to keep detailed records and documentation related to the franchise, as these could be relevant in any post-termination disputes. Franchisees should carefully consider the potential costs and burdens associated with this requirement before entering into the franchise agreement.