Under what circumstances related to proprietary marks or confidential information can a Spray Net franchise agreement be terminated?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Termination: SPRAY-NET retains the right to restrict access to the Spray-Network in the event of failure to pay invoices, breach of franchise agreement or termination of a Franchise.
Fees and Payment Terms: Software fees for the use of the Spray-Network are broken down into reoccurring monthly fixes fees, as outlined in the franchise agreement. In addition to the monthly fixed fee, there is a weekly Tech fee royalty amount due. This accounts for 0.0025 of total job value produced the previous week.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, Spray-Net retains the right to restrict access to the Spray-Network, which includes the software platform, in the event of a breach of the franchise agreement or termination of a franchise. This means that if a franchisee violates the terms of their agreement, including those related to the use of proprietary marks or confidential information, Spray Net can terminate the agreement and restrict access to the software platform necessary to operate the franchise.
Spray Net emphasizes the importance of its proprietary marks and system, stating that the franchisee acknowledges that these are the sole and exclusive property of Spray Net. The franchisee's right to use these marks and the system is contingent upon their continued full and timely performance under the franchise agreement. This highlights the franchisor's control over its intellectual property and the franchisee's obligation to adhere to the terms of the agreement to maintain their right to operate the franchise.
Furthermore, the FDD states that the franchisee must maintain and display signage and advertising bearing the proprietary marks that reflect the current commercial image of the system. If Spray Net notifies the franchisee to discard and cease the use of proprietary marks or other imagery that has become obsolete and no longer authorized, the franchisee must comply immediately. Failure to do so could be construed as a breach of the franchise agreement, potentially leading to termination. This underscores the importance of franchisees staying aligned with Spray Net's brand standards and intellectual property guidelines to avoid jeopardizing their franchise agreement.