What actions are prohibited under the non-solicitation agreement for a 360 Painting franchise?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and the Bound Parties agree that while this Agreement is in effect and for two (2) years after expiration or termination of this Agreement for any reason, or following the date of a Transfer by Franchisee, they will not directly solicit or otherwise materially interfere with or disrupt the customer or vendor relationship between Franchisor and any of their respective customers and vendors or between any other 360 Painting franchisee and its customers and vendors.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, during the term of the Franchise Agreement and for two years after the agreement expires, is terminated, or following a transfer by the franchisee, the franchisee and related parties are prohibited from certain actions related to customers and vendors.
Specifically, franchisees cannot directly solicit or materially interfere with the relationships between 360 Painting and its customers or vendors. This restriction also applies to the relationships between other 360 Painting franchisees and their respective customers and vendors.
This non-solicitation clause is designed to protect 360 Painting's established business relationships and prevent franchisees from unfairly leveraging those relationships for their own benefit, especially after the franchise agreement ends. This type of clause is common in franchise agreements to safeguard the franchisor's and other franchisees' customer base and vendor connections.