Under what circumstances will the Spray Net franchise agreement automatically terminate without notice or opportunity to cure?

According to Spray Net's 2025 Franchise Disclosure Document, if a franchisee fails to execute an addendum detailing revised territory boundaries or the termination of exclusive rights within a prescribed 10-day period after receiving notice from Spray Net, Spray Net has the option to immediately terminate the agreement upon notice to the franchisee. This means that Spray Net can reduce the size of a franchisee's territory if the franchisee defaults under Section 6(Z) of the agreement.

This is an important consideration for prospective Spray Net franchisees as it outlines a specific scenario where the franchise agreement can be terminated without the typical notice and cure period. Franchisees should understand the conditions under which Spray Net might elect to reduce their territory and the implications of failing to agree to the revised terms.

It is crucial for potential franchisees to carefully review Section 6(Z) of the franchise agreement to fully understand the circumstances that could lead to a reduction in territory and subsequent termination if the addendum is not signed within the specified timeframe. This clause gives Spray Net significant power to alter the franchise agreement and terminate it quickly if the franchisee does not comply with the addendum requirement.