According to 360 Painting, what constitutes a 'National Account'?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "National Account" means any customer (or prospective customer) which, on its own behalf or through agents, franchisees or other third parties, owns, manages, or controls buildings or dwellings in more than one (1) location, at least one of which is not situated within any one particular franchisee's Protected Territory. (In other words, if a customer (or prospective customer) controls two buildings, and one is in Franchisee's Protected Territory while the other is not, the customer qualifies as a National Account.) Any dispute as to whether a customer is a National Account shall be determined by Franchisor in its sole and absolute discretion.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, a 'National Account' is defined as any customer or prospective customer who, either directly or through agents, franchisees, or other third parties, owns, manages, or controls buildings or dwellings in more than one location. At least one of these locations must be outside any single franchisee's protected territory. Essentially, if a customer controls multiple buildings, and at least one of those buildings is located outside a franchisee's protected territory, that customer qualifies as a National Account. 360 Painting retains the sole discretion to determine whether a customer qualifies as a National Account.
This definition has significant implications for 360 Painting franchisees. The franchisor can negotiate and enter into agreements with National Accounts, even if those accounts have locations within a franchisee's protected territory. However, if a National Account contract includes locations within a franchisee's territory, 360 Painting will offer the franchisee the option to perform the services, provided the franchisee is in substantial compliance with the franchise agreement. The franchisee has ten days to accept this option.
If a 360 Painting franchisee declines to service a National Account or fails to respond within the specified timeframe, 360 Painting has the right to provide the services directly, through affiliates, or through another franchisee. They can also contract with a third party to provide the services. This ensures that National Accounts receive consistent service, but it also means that a franchisee could potentially lose business within their protected territory if they are unable or unwilling to meet the National Account's requirements.
Furthermore, if a National Account expresses dissatisfaction with a franchisee's services, 360 Painting can offer the opportunity to service the account to another franchisee. This clause underscores the importance of maintaining high service standards to retain National Account business. The FDD specifies that the provision of services to National Accounts by 360 Painting or another party does not constitute a violation of the franchisee's protected territory rights, even if the services are performed within that territory.