What agreement must the Controlled Entity enter into with 360 Painting?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
- EXHIBIT C-1 MISCELLANEOUS INFORMATION; TERRITORY DEFINED
- EXHIBIT C-2 PERSONAL COVENANTS
- EXHIBIT C-3 INTERNET WEB SITES AND LISTINGS AGREEMENT
- EXHIBIT C-4 TELEPHONE LISTING AGREEMENT
EXHIBIT C-5 FRANCHISEE INFORMATION
EXHIBIT C-6 GUARANTY AGREEMENT
EXHIBIT C-7 GENERAL RELEASE
EXHIBIT C-8 ACH AUTHORIZATION
EXHIBIT C-9 COPY OF SIGNED RECEIPT TO FRANCHISE DISCLOSURE DOCUMENT
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, if a franchisee operates their 360 Painting franchise through a controlled entity, that entity does not have a specifically enumerated agreement that it must enter into with 360 Painting. However, several agreements are listed as exhibits to the franchise agreement, such as the Personal Covenants, Telephone Listing Agreement, Guaranty Agreement, and General Release.
While the excerpts do not explicitly state that a controlled entity must sign a specific agreement, it is common practice for franchisors to require guarantees or acknowledgments from the entity to ensure compliance with the franchise agreement terms. This protects the franchisor's interests and ensures that all parties are bound by the franchise terms.
To clarify the requirements for controlled entities, a prospective 360 Painting franchisee should ask the franchisor directly about which agreements, if any, the controlled entity must enter into. Specifically, they should inquire whether a separate guaranty or acknowledgment is required from the controlled entity to ensure it is bound by the terms of the Franchise Agreement.