What specific franchisee actions could lead to Spray Net seeking injunctive relief?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
attempt to mediate a controversy, dispute, or claim through mediation as set forth in this Section 21(C) if such controversy, dispute, or claim concerns an allegation that a party has violated (or threatens to violate, or poses an imminent risk of violating): (i) any federally protected intellectual property rights in the Proprietary Marks, the System, or in any Confidential Information or other confidential information; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under this Agreement.
- D. Injunctive Relief. Franchisee acknowledges and agrees that irreparable harm could be caused to Franchisor by Franchisee's violation of certain provisions of this Agreement and, as such, in addition to any other relief available at law or equity, Franchisor shall be entitled to obtain in any court of competent jurisdiction, without bond, restraining orders or temporary or permanent injunctions in order to enforce, among other items, the provisions of this Agreement relating to: (i) Franchisee's use of the Proprietary Marks and Confidential Information (including any proprietary software used in connection with the Franchised Business); (ii) the in-term covenant not to compete, as well as any other violations of the restrictive covenants set forth in this Agreement; (iii) Franchisee's obligations on termination or expiration of this Agreement; (iv) disputes and controversies based on or arising under the Lanham Act, or otherwise involving the Proprietary Marks,
as now or hereafter amended;
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the company can seek injunctive relief against a franchisee for specific violations of the franchise agreement. These include actions related to the franchisee's use of Spray Net's proprietary marks and confidential information, including any proprietary software used in their business.
Spray Net may also seek injunctive relief if a franchisee violates the in-term covenant not to compete or any other restrictive covenants outlined in the agreement. Additionally, if a franchisee fails to meet their obligations upon termination or expiration of the agreement, Spray Net may pursue this legal avenue. Disputes and controversies arising under the Lanham Act, or those involving the proprietary marks, can also lead to injunctive relief.
Furthermore, Spray Net can seek injunctive relief to enforce confidentiality rights within the agreement. Finally, any act or omission by a franchisee or their employees that violates applicable law, threatens Spray Net's franchise system, or threatens other franchisees can result in Spray Net seeking an injunction. The franchisee's sole remedy if an injunction is issued is to seek its dissolution, and they waive all damage claims if the injunction is wrongfully issued.