Does Spray Net reserve the right to enter into franchise agreements with other franchisees that may contain different provisions?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
scretion as to whether it decides to grant Franchisee the right to open any additional Franchised Businesses, each of which will be governed by a separate form of Franchisor's then-current franchise agreement.
- E. Reservation of Rights. Notwithstanding anything contained in this Agreement, Franchisor and its affiliates hereby reserve the exclusive right to: (i) own and operate franchised businesses at any location(s) outside of the Designated Territory under the Proprietary Marks, or to license others the right to own and operate Spray-Net businesses at any location(s) outside of the Designated Territory under the Proprietary Marks and System; (ii) the right to own and operate businesses under different marks at any location(s) inside
or outside of the Designated Territory, or license to others the right to own and operate such businesses, under different marks at any location(s) inside or outside of the Designated Territory (such businesses will not primarily provide painting products and services); (iii) use the Proprietary Marks and System in connection with services and products, promotional and marketing efforts, or related items, or in alternative channels of distribution, including the sale of any Spray-Net products in wholesale and retail stores, via the Internet, and through mail order catalog, without regard to location;
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Spray Net retains specific rights regarding the operation of other businesses under its marks. Spray Net reserves the right to operate or license others to operate Spray-Net businesses outside a franchisee's designated territory. This means that while a franchisee has an exclusive territory, Spray Net can still expand its brand's presence outside of that area through company-owned or other franchised locations.
Spray Net also reserves the right to operate businesses under different marks, both inside and outside a franchisee's designated territory, or to license others to do so. However, these businesses must not primarily offer painting products and services. This provision allows Spray Net to diversify its business interests without directly competing with its franchisees in their core service offerings.
Additionally, Spray Net can use its Proprietary Marks and System in various channels of distribution, including wholesale, retail, internet sales, and mail order catalogs, without regard to location. This enables Spray Net to expand its market reach beyond the traditional franchise model and tap into different revenue streams. Spray Net also retains the right to use its marks and system, and license others to do so, for any activities not expressly prohibited in the franchise agreement, providing flexibility for future business ventures.