What are individuals with access to Confidential Information for 360 Painting required to execute?

According to the 2025 360 Painting FDD, individuals with access to confidential information must execute the Personal Covenants contained in the Franchise Agreement as Exhibit C-2. These covenants are substantially the same as the noncompetition, non-solicitation, and confidentiality covenants found within the Franchise Agreement itself.

This requirement extends to a wide range of individuals, including the franchisee's owners (and their immediate families), officers, directors, executives, managers, and professional staff. By signing these covenants, these individuals agree to protect 360 Painting's confidential information and refrain from competing with or soliciting its customers or employees, both during the term of the franchise agreement and for a specified period afterward.

For a prospective 360 Painting franchisee, this means ensuring that all relevant personnel are willing to sign and adhere to these covenants. It also highlights the importance of carefully reviewing Exhibit C-2 of the Franchise Agreement to fully understand the scope and implications of these restrictions. Failure to comply with these covenants could result in legal action and financial penalties for both the franchisee and the individuals involved.

This type of requirement is common in franchising, as franchisors seek to protect their trade secrets, customer relationships, and competitive advantage. Prospective franchisees should carefully consider these restrictions and their potential impact on their business operations and personal activities.