Can 360 Painting change the Protected Territory without the franchisee's consent?

According to 360 Painting's 2025 Franchise Disclosure Document, the franchisor generally cannot alter a franchisee's protected territory without their consent. The FDD specifies that the protected territory, defined as the residential geographic area where the franchisee can operate their 360 Painting business, will be outlined in the Franchise Agreement. This territory is delineated by zip codes and contains between 50,000 and 80,000 single-family dwellings. Franchisees must operate solely within this designated area from their home office or approved office space, ensuring all vehicles and business operations remain within the protected territory.

However, there is an exception. 360 Painting may modify the protected territory if the US Postal Service alters the zip codes encompassed by the territory. This modification aims to account for the changes in zip code boundaries, potentially resulting in a smaller geographic area or fewer people included in the protected territory.

Beyond this specific instance related to postal service modifications, 360 Painting assures that it cannot unilaterally change the protected territory without the franchisee's explicit consent. This provision offers a degree of security for franchisees, ensuring their defined operational area remains stable unless zip code modifications necessitate adjustments. This is a fairly standard practice in franchising, as protected territories are a key element of the franchise agreement.