What section of the Spray Net Franchise Agreement outlines the conditions for transferring to an immediate family member after death or disability?

According to Spray Net's 2025 Franchise Disclosure Document, Section 13(B) of the Franchise Agreement addresses the conditions for transferring the franchise in the event of the franchisee's death or disability. Specifically, Section 13(B)(3) states that Spray Net will not collect a transfer fee if the transfer is to an immediate family member and Spray Net approves the transfer under Section 13(E).

In the event of the franchisee's death, disability, or incapacitation, their legal representative has the right to continue operating the franchised business under the existing agreement. However, this is contingent upon meeting certain conditions. Within 180 days of the event, the representative must obtain Spray Net's written approval and execute the then-current franchise agreement for the remaining term, or provide a personal guarantee if the franchisee is a partnership, corporation, or LLC. Additionally, the representative must successfully complete Spray Net's training program, which is provided at the current tuition rate.

Spray Net is not obligated to operate the franchised business or incur any obligations on behalf of an incapacitated franchisee during or after the 180-day period. If necessary, the franchisee or their legal representative must appoint a previously approved acting interim manager to oversee the business during this time. Spray Net has the option, but not the requirement, to operate the business on the franchisee's behalf and at the franchisee's expense, covering past, current, and future obligations, including amounts owed to Spray Net, with reimbursements for management services and other costs.