For 360 Painting, does the franchisee understand they are bound by the non-compete covenants in the Franchise Agreement?

According to the 2025 360 Painting Franchise Disclosure Document, prospective franchisees must complete a Franchise Compliance Questionnaire. Question 4 of this questionnaire specifically asks: "Do you understand that you are bound by the non-compete covenants (both in-term and post-term) listed in the Franchise Agreement that an injunction is an appropriate remedy to protect the interests of the 360 Painting System if you violate the covenant(s)?" Franchisees must answer 'Yes' to confirm their understanding.

This requirement ensures that franchisees acknowledge and comprehend the non-compete obligations they are agreeing to in the Franchise Agreement. These covenants typically restrict a franchisee's ability to operate a similar business during the term of the franchise and for a certain period after the franchise agreement ends, within a specified geographic area. The questionnaire highlights that 360 Painting can seek an injunction, a court order that would legally prevent the franchisee from violating the non-compete agreement.

By requiring this acknowledgement, 360 Painting aims to minimize future disputes regarding non-compete clauses. It confirms that franchisees were informed of and understood these restrictions before entering into the agreement. This is a common practice in franchising, as franchisors need to protect their brand, customer base, and proprietary information.

Prospective 360 Painting franchisees should carefully review the non-compete covenants in the Franchise Agreement and seek legal counsel to fully understand their obligations and potential limitations. Answering 'Yes' to this question on the questionnaire signifies that the franchisee has been made aware of these important terms.