When must the 360 Painting franchisee deliver the signed agreement and Personal Covenants to the franchisor?

According to 360 Painting's 2025 Franchise Disclosure Document, the franchisee must deliver the signed agreement to the franchisor at the time the franchisee delivers the signed agreement. Additionally, each Bound Party of the franchisee must sign and deliver the Personal Covenants (Exhibit C-2) to 360 Painting at the same time.

This requirement ensures that all parties who are subject to certain restrictions, such as non-compete clauses, are legally bound by those terms from the outset of the franchise agreement. The "Bound Parties" are agreeing to be personally bound by the provisions in Sections 18.1, 18.2, and 18.3 of the agreement, which likely cover non-competition, non-solicitation, and confidentiality.

If there are any changes in the identity of any Bound Party while the agreement is in effect, the franchisee is obligated to promptly notify 360 Painting and ensure that the new Bound Party also signs and delivers the Personal Covenants. This ongoing obligation ensures that the non-compete and confidentiality protections remain in place even if the individuals associated with the franchisee change over time. This is a fairly standard practice in franchising to protect the franchisor's interests.