After the termination or expiration of the Spray Net Franchise Agreement, are franchisees still obligated to disclose improvements to the franchisor?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement provides that if you, your employees, or principals develop any inventions, discoveries, and improvements, whether or not patentable or copyrightable, that are conceived or made by you or your employees or agents that are in any way related to the establishment or operation of the Franchised Business (collectively, the "Improvements"), you must disclose those Improvements to us and all such Improvements will automatically and without further action be owned by us without compensation to you (including all intellectual property rights therein). Whenever requested to do so by us, you will execute any and all applications, assignments, or other instruments that we may deem necessary to apply for and obtain intellectual property protection or to otherwise protect our interest therein. These obligations shall continue beyond the termination or expiration of this Agreement. If a court should determine that we
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 53–55)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees are obligated to disclose any improvements made related to the franchised business even after the termination or expiration of the Franchise Agreement. Specifically, if a franchisee, their employees, or principals develop any inventions, discoveries, and improvements related to the Spray Net business, they must disclose these to Spray Net.
These improvements automatically become the property of Spray Net without any compensation to the franchisee. This includes all intellectual property rights associated with the improvements. The franchisee is also required to execute any documents necessary for Spray Net to obtain intellectual property protection for these improvements.
Even if a court determines that Spray Net cannot automatically own certain improvements, the franchisee must grant Spray Net a perpetual, royalty-free worldwide license to use and sublicense those improvements. This obligation extends indefinitely, even after the franchise agreement ends, ensuring Spray Net retains control over any advancements or innovations related to the Spray Net system.