Under what conditions will Spray Net reimburse a franchisee for expenses incurred in a legal proceeding disputing the authorized use of any Spray Net Proprietary Mark?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately notify us, in writing, if you become aware of any unauthorized use of our Proprietary Mark or other proprietary information, and you must permit us to participate in any litigation involving you and our Proprietary Marks. We will take the action we think appropriate. While we are not required to defend you against a claim against your use of our Proprietary Marks, we will reimburse you for all of your expenses reasonably incurred in any legal proceeding disputing your authorized use of any Proprietary Mark, in compliance with the Franchise Agreement and our written directives, so long as you notify us of the proceeding in a timely manner and you have complied with our directions with regard to the proceeding. We have the right to control the defense and settlement of any proceeding. We will not reimburse you for your expenses and legal fees for separate, independent legal counsel and for expenses in removing signage or discontinuing your use of any Proprietary Marks. We will not reimburse you for disputes where we challenge your use of a Proprietary Marks.
Source: Item 13 — TRADEMARKS (FDD pages 52–53)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, while Spray Net is not required to defend a franchisee against claims regarding the use of its Proprietary Marks, it will reimburse the franchisee for expenses reasonably incurred in a legal proceeding. This reimbursement is specifically for disputes over the franchisee's authorized use of any Proprietary Mark.
However, this reimbursement is contingent on several conditions. First, the franchisee must notify Spray Net of the proceeding in a timely manner. Second, the franchisee must comply with Spray Net's directions regarding the legal proceeding. Spray Net retains the right to control the defense and settlement of any such proceeding.
It is important to note that Spray Net will not reimburse franchisees for the expenses of separate, independent legal counsel. Additionally, Spray Net will not cover expenses related to removing signage or discontinuing the use of any Proprietary Marks. Furthermore, Spray Net will not reimburse expenses for disputes where Spray Net itself is challenging the franchisee's use of the Proprietary Marks. This means that if Spray Net believes a franchisee is misusing its trademarks, the franchisee will bear all legal costs in defending their actions.