Can Spray Net take possession of the site if the franchisee defaults under the lease?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
ation**: Franchisee shall not permit the Lease to become subordinate to any lien without first obtaining Franchisor's written consent, other than the lien created by this Assignment, the Franchise Agreement, the Lessor's lien under the Lease, liens securing bank financing for the operations of Franchisee on the Site and the agreements and other instruments referenced herein. The Franchisee will not terminate, modify or amend any of the provisions or terms of the Lease without the prior written consentof the Franchisor. Any attempt at termination, modification or amendment of any of the terms of the Lease without such written consent is null and void.
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- Exercise of Remedies: In any case of default by the Franchisee under the terms of the Lease or under the Franchise Agreement, Franchisor shall be entitled to exercise any one or more of the following remedies in its sole discretion:
- a) to take possession of the Site, or any part thereof, personally, or by its agents or attorneys;
- b) to, in its discretion, without notice and with or without process of law, enter upon and take and maintain possession of all or any part of the Site, together with all furniture, fixtures, inventory, books, records, papers and accounts of the Franchisee;
- c) to exclude the Franchisee, its agents or employees from the Site;
- d) as attorney-in-fact for the Franchisee, or in its own name, and under the powers herein granted, to hold, operate, manage and control the Franchised Business and conduct the business, if any, thereof, either personally or by its agents, with full power to use such measures, legally rectifiable, as in its discretion may be deemed proper or necessary to cure such default, including actions of forcible entry or detainer and actions in distress of rent, hereby granting full power and authority to the Franchisor to exercise each and every of the rights, privileges and powers herein granted at any and all times hereafter;
- e) to cancel or terminate any unauthorized agreements or subleases entered into by the Franchisee, for any cause or ground which would entitle the Franchisor to cancel the same;
- f) to disaffirm any unauthorized agreement, sublease or subordinated lien, to make all necessary or proper repairs, decorating, renewals, replacements, alterations, additions, betterments and improvements to the Site or the Site that may seem judicious, in the sole discretion of the Franchisor; and
- g) to insure and reinsure the same for all risks incidental to the Franchisor's possession, operation and management thereof;
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, if a franchisee defaults under the terms of their lease or the Franchise Agreement, Spray Net has the option to take possession of the site. Spray Net can act personally, through agents, or attorneys to take possession of the site or any part of it. This includes the ability to enter and maintain possession of the site, along with all furniture, fixtures, inventory, books, records, papers, and accounts of the franchisee, with or without notice and with or without process of law.
Spray Net can also exclude the franchisee, its agents, or employees from the site. Additionally, Spray Net can act as the franchisee's attorney-in-fact, operating and managing the franchised business to cure the default. This includes actions of forcible entry or detainer and actions in distress of rent. Spray Net also has the power to cancel or terminate any unauthorized agreements or subleases made by the franchisee and to disaffirm any unauthorized agreement, sublease, or subordinated lien.
Furthermore, Spray Net can make necessary repairs, decorations, renewals, replacements, alterations, additions, betterments, and improvements to the site. They can also insure and reinsure the site for risks related to their possession, operation, and management. Spray Net is not required to assume the lease or take possession of the site, and exercising these rights is optional. If Spray Net chooses to assume the lease or take possession, they will provide written notice to the franchisee.