What is the duration of the non-solicitation agreement for a 360 Painting franchise after the agreement expires or terminates?

According to the 2025 FDD, 360 Painting franchisees are subject to a non-solicitation agreement that extends for a period of two years after the expiration or termination of the Franchise Agreement. This restriction prevents franchisees and related parties from directly soliciting or interfering with the relationships between 360 Painting and its customers or vendors, as well as relationships between other 360 Painting franchisees and their respective customers and vendors. This obligation remains in effect regardless of the reason for the agreement's termination or expiration, or following a transfer of the franchise.

This non-solicitation clause is designed to protect 360 Painting's established business relationships and prevent former franchisees from leveraging their knowledge of the system to unfairly compete. It ensures that franchisees do not use their access to customer and vendor information gained during the franchise term to the detriment of the franchisor or other franchisees after they leave the system. The clause applies not only to the franchisee but also to other parties associated with the franchisee, such as partners.

For a prospective 360 Painting franchisee, this means that upon leaving the franchise system, they must avoid any actions that could disrupt the existing relationships between the franchisor, other franchisees, and their customers and vendors for two years. This could limit their ability to engage in similar businesses or roles that involve contacting or working with these parties. Franchisees should carefully consider this restriction and its potential impact on their future business endeavors before entering into the Franchise Agreement.