What is the definition of the Protected Territory granted to a 360 Painting franchisee?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section H | |
ITEM 12: TERRITORY
When you sign the Franchise Agreement, we will grant you a Protected Territory, which we define as the residential geographic area in which you will have the right to use the Marks and the System to operate your 360 Painting Business and which will be set forth in your Franchise Agreement. You must operate your franchise only in the Protected Territory and only from your home office (or other approved office space) and your Vehicles, and your home office (or other approved office space) and all Vehicles must be located in the Protected Territory at all times. Your Protected Territory will be delineated by zip codes and will consist of a geographic area containing not less than 50,000 to 80,000 single family dwellings.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, if you are in compliance with the Franchise Agreement, we will not establish or operate, or license others to establish or operate, 360 Painting Businesses within the Protected Territory. We do not offer any options, rights of first refusal or similar rights to acquire additional franchises. We retain the right to: (a) own and operate, and license to others the right to own and operate 360 Painting Businesses or Businesses outside of your Protected Territory using the Marks or any other marks; (b) own and operate and license to others the right to own and operate similar businesses inside or outside of the Protected Territory under different marks; (c) use the Marks and System in connection with conducting marketing and promotional activities within it outside the Protected Territory, including marketing and promotional activities related to the solicitation of National Accounts (defined below); (d) use the Marks and System to offer services and products, or related items, or in alternative channels of distribution, including the sale of goods or services through wholesale and retail stores, via the Internet, through mail order catalog, and via direct marketing through telephone, television, or radio within or outside of your Protected Territory; (e) develop or become associated with other concepts (including dual branding relationships and/or operation of other franchise systems), whether or not using the System and/or the Marks, and award franchises under other concepts for locations anywhere; (f) acquire, be acquired by, merge, affiliate with or engage in any transaction with other businesses (whether competitive or not), with units located anywhere, and if such transaction involves the operation or license of a business in the Protected Territory, may include the conversion such a business to one operated under the Marks and the System;
Source: Item 12 — TERRITORY (FDD pages 38–39)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, a Protected Territory is granted to franchisees, defining the residential geographic area where they can use the 360 Painting Marks and System to operate their business. This territory is specified in the Franchise Agreement and must be the sole area of operation for the franchise. The franchisee's home office (or other approved office space) and vehicles must be located within this Protected Territory at all times.
The Protected Territory is delineated by zip codes and contains a geographic area with a minimum of 50,000 to 80,000 single-family dwellings. However, this territory is not exclusive, meaning franchisees may face competition from other franchisees, outlets owned by 360 Painting, or other channels of distribution and competitive brands controlled by 360 Painting. 360 Painting retains the right to operate or license others to operate businesses outside the franchisee's Protected Territory using the Marks or other marks.
360 Painting may enter into agreements with National Accounts for services at multiple locations. If such an agreement requires services within a franchisee's Protected Territory, the franchisee will be offered the opportunity to provide these services under the terms of the National Account contract. The franchisee has 10 days to accept or reject the opportunity. If the franchisee declines or fails to respond, 360 Painting may offer the services to another franchisee or a third party. Franchisees are compensated only for the services they provide. Franchisees cannot solicit customers or advertise outside their Protected Territory without prior written consent from 360 Painting, and they cannot use other channels of distribution to make sales outside of their territory.
It is important to note that the US Postal Service's modification of zip codes within the Protected Territory may lead to adjustments in the territory, potentially reducing the included population or geographic area. Except as described, 360 Painting cannot change the Protected Territory without the franchisee's consent, and franchisees are not required to meet sales or market penetration quotas.