What is the 'System' as defined in the Spray Net Confidentiality and Restrictive Covenant Agreement?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and its affiliate/principals, as a result of the expenditure of time, skill, effort, and money, have developed and own a unique system (the "System") related to the development, opening, and ongoing operation of a business that offers and provides various types of painting-related products and services that Franchisor authorizes now or in the future (collectively, the "Approved Products" and "Approved Services", as applicable), including proprietary products and the corresponding services to existing residential homes (each, a "Client").
For purposes of this Agreement, each such business will be referred to herein as a "Spray-Net Business"
- B.
Franchisor's System is comprised of various proprietary and, in some cases, distinguishing elements, including without limitation: proprietary methodology and procedures for the establishment and operation of a Spray-Net Business; standards and specifications for the supplies, inventory and methodology associated with storing, preparing, offering and providing each type of Approved Product and Approved Service; advertising; marketing; standards and specifications for equipment; customize designed chemicals, equipment, and other services; basic standards typically used as the premises for a Spray-Net Business; standards and specifications for the furniture, fixtures and equipment, including computer hardware and system, that must be used in connection with an Franchised Business; established relationships with approved or designated suppliers for certain products and services that must be utilized in connection with an Franchised Business, including certain proprietary and/or branded items; proprietary training programs, courses and training materials; Franchisor's confidential and proprietary operations manual and, at Franchisor's option, other instructional manuals that have been reduced to writing (collectively, the "Manuals"); and standards and specifications for advertising, bookkeeping, sales and other aspects of operating an Franchised Business.
The parties agree and acknowledge that Franchisor may change, improve, further develop, or otherwise modify the System from time to time as it deems appropriate in its discretion.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the 'System' refers to the unique system that Spray Net has developed related to the development, opening, and ongoing operation of a business offering painting-related products and services. This system encompasses various proprietary elements.
The Spray Net System includes proprietary methodology and procedures for operating a Spray-Net Business, standards for supplies, inventory, and methodology for storing, preparing, offering, and providing approved products and services. It also covers advertising, marketing, equipment standards, custom-designed chemicals and equipment, basic standards for premises, and specifications for furniture, fixtures, and computer hardware and systems.
Additionally, the Spray Net System includes established relationships with approved suppliers for certain products and services, proprietary training programs, courses, and materials, confidential operations manuals, and standards for advertising, bookkeeping, sales, and other operational aspects. Spray Net retains the right to modify the System over time as deemed appropriate.