What happens if a court finds the non-competition restriction for a 360 Painting franchise to be unreasonable?

According to 360 Painting's 2025 Franchise Disclosure Document, if any part of the non-compete restriction is found to be unreasonable in terms of time or distance, a court may reduce the time or distance to what is deemed reasonable. This means that the entire non-compete agreement will not necessarily be thrown out; instead, the court has the power to modify the restriction to make it enforceable.

This clause protects 360 Painting by ensuring that the non-compete is upheld to the fullest extent possible under the law. It also provides some reassurance to the franchisee that an overly broad restriction will not be strictly enforced. The franchisee acknowledges the difficulty of determining monetary damages from a breach and the irreparable harm that would occur, agreeing that 360 Painting is entitled to an injunction without a bond to prevent any breach or threatened breach, in addition to any other relief.

The franchisee also acknowledges that the non-compete provisions will be tolled during any period of default, and the restriction will apply for the greater of two years from termination or two years from a court order restraining the franchisee from violating the non-compete. This ensures that 360 Painting is protected for a full two years, even if legal action is required to enforce the agreement.