What is Exhibit C-2, which 360 Painting requires to be signed by each Bound Party?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
- EXHIBIT C-1 MISCELLANEOUS INFORMATION; TERRITORY DEFINED
- EXHIBIT C-2 PERSONAL COVENANTS
- EXHIBIT C-3 INTERNET WEB SITES AND LISTINGS AGREEMENT
- EXHIBIT C-4 TELEPHONE LISTING AGREEMENT
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, Exhibit C-2 to the 360 Painting Franchise Agreement is titled "PERSONAL COVENANTS". While the FDD mentions its existence as an exhibit, it does not provide further details about the specific contents or terms of the Personal Covenants.
Given that the document is silent on the specifics, it is important for a prospective 360 Painting franchisee to request a copy of Exhibit C-2 from the franchisor and carefully review it with a legal professional. Understanding the obligations and restrictions outlined in the Personal Covenants is crucial before entering into a franchise agreement.
Specifically, the franchisee should seek clarification on who the "Bound Parties" are, what specific obligations they are subject to under the Personal Covenants, and what the potential consequences are for any breaches of these covenants. This due diligence will help the franchisee make an informed decision and avoid potential disputes or misunderstandings in the future.