Does Spray Net have any restrictions on their right to assign the franchise agreement?

According to Spray Net's 2025 Franchise Disclosure Document, Spray Net has no restrictions on their right to assign the franchise agreement. As a franchisee, this means that Spray Net can transfer the agreement to another party without needing your approval or consent. This is a standard practice in franchising, as it allows the franchisor flexibility in managing its business and network.

However, the FDD also outlines the conditions under which a franchisee can transfer their interest in the Franchise Agreement. Spray Net must approve all transfers by the franchisee, but they will not unreasonably withhold approval if the franchisee meets certain conditions. These conditions include satisfying all accrued monetary obligations, curing existing defaults, executing a general release, providing a copy of the executed purchase agreement, and ensuring the transferee meets Spray Net's qualifications for a new franchisee.

Additional conditions for the franchisee's transfer include the transferee executing Spray Net's current franchise agreement and completing the Initial Training Program. Furthermore, the franchisee or transferee must pay a transfer fee of $10,000. The franchisee must also comply with all post-termination provisions, ensure the transferee obtains all necessary permits and licenses, obtain lessor consent, reimburse Spray Net for any brokerage commissions, and ensure the transfer complies with all applicable laws.

Spray Net also retains the right of first refusal to acquire the franchisee's business. If a franchisee proposes to transfer their interest, they must first offer to sell it to Spray Net on the same terms as offered by the third party. If Spray Net declines, the franchisee has 60 days to complete the transfer to the third party. If the transfer does not occur within that timeframe or the terms change, Spray Net has another 30 days to exercise their right of first refusal.