factual

Who is responsible for appointing an interim manager to operate the Spray Net franchised business during the 180-day period following a franchisee's death or incapacitation?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

ogram (which Franchisor will provide at Franchisor's thencurrent tuition rate). Such assignment by operation of law will not be deemed in violation of this Agreement, provided such heirs or legatees accept the conditions imposed by the Franchise Agreement and are acceptable to Franchisor.

    1. Franchisor is under no obligation to operate the Franchised Business, or incur any obligation on behalf of any incapacitated franchisee, during or after the 180 Day Period. If necessary, Franchisee (or Franchisee's legal representative, as applicable) shall appoint a previously approved acting interim manager to operate the Franchised Business during the 180 Day Period.

Source: Item 23 — RECEIPTS (FDD pages 75–219)

What This Means (2025 FDD)

According to Spray Net's 2025 Franchise Disclosure Document, in the event of a franchisee's death, disability, or incapacitation, the franchisee (or the franchisee's legal representative) is responsible for appointing a previously approved acting interim manager to operate the franchised business during the 180-day period. This means that the franchisee or their legal representative must take the initiative to find and appoint someone who has already been vetted and approved by Spray Net to manage the business temporarily.

However, the FDD also states that Spray Net is not obligated to operate the franchised business or incur any obligations on behalf of an incapacitated franchisee during or after this 180-day period. This highlights that the responsibility falls on the franchisee's side to ensure business continuity during such unforeseen circumstances.

Furthermore, in the event of the franchisee's death, disability, absence, or otherwise, Spray Net has the option, but not the requirement, to operate the franchised business on the franchisee's behalf and at the franchisee's expense. Spray Net can manage the business for a period of time and under terms and conditions that they determine, including using the assets and revenues of the business to cover obligations, and paying themselves a reasonable amount for their management services and other costs. This provides Spray Net with some flexibility to step in and manage the business if necessary, but it does not relieve the franchisee's estate of the initial responsibility to appoint an interim manager.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.