Under what circumstances does Spray Net retain the right to restrict access to the Spray-Network?
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.
Duration: The use and rights of the Spray-Network are limited to the following terms and conditions:
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- The Franchise Owner must be considered in good standing and not in violation of a breach of contract, payment, or termination of the franchise agreement.
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- In the event of a closure or termination, the franchisor will determine the appropriate steps and limits with rights of access to the Spray-Network.
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- In the event an employee of the franchise Owner is no longer an active owner. The Franchise Owner must take the appropriate steps to remove the user from the Spray-Network, fully revoking access to the platform.
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- The Franchise Owner must pay for the Software license fees to maintain access to the Spray-Network, as outlined in the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Spray-Net retains the right to restrict a franchisee's access to the Spray-Network under specific circumstances. These circumstances include failure to pay invoices, breach of the franchise agreement, or termination of the franchise agreement. This means that if a franchisee does not meet their financial obligations, violates the terms of their agreement with Spray Net, or the franchise agreement is terminated, Spray Net can revoke their access to the Spray-Network software.
Additionally, the use and rights to the Spray-Network are limited to franchisees who are in good standing, meaning they are not in violation of contract, payment, or facing termination. If a franchise closes or terminates, Spray Net will determine the appropriate limits and rights of access to the Spray-Network. Franchisees must also remove employees who are no longer active from the Spray-Network to revoke their access. Maintaining access also requires the franchisee to pay the software license fees as outlined in the Franchise Agreement.
These conditions are important for prospective franchisees to consider, as they highlight the importance of adhering to the franchise agreement and maintaining good financial standing with Spray Net. Failure to do so can result in the loss of access to the Spray-Network, which is a critical tool for managing and operating the franchise. This is a fairly standard clause in franchise agreements, as franchisors need to protect their systems and ensure compliance among franchisees.