factual

Who determines if a customer qualifies as a National Account for 360 Painting?

360_Painting Franchise · 2025 FDD

Answer from 2025 FDD Document

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 the 2025 FDD, 360 Painting determines whether a customer qualifies as a National Account in its sole and absolute discretion. A "National Account" is defined as a customer or prospective customer who owns, manages, or controls buildings or dwellings in more than one location, with at least one location outside any particular franchisee's protected territory.

This means that 360 Painting retains control over large, multi-location accounts and can negotiate agreements with them directly. If a franchisee is in good standing, 360 Painting will offer the franchisee the option to service locations within their protected territory under the terms of the National Account contract. The franchisee has ten days to accept this option.

However, if the franchisee declines or fails to respond within the specified time, 360 Painting has the right to provide the services directly, through affiliates, or by contracting with another party. This arrangement allows 360 Painting to manage relationships with large national clients consistently, but it also means that franchisees may not have exclusive rights to service all customers within their territory, especially larger accounts. Prospective franchisees should understand that while they have territorial protection for local residential and light commercial customers, 360 Painting retains control over National Accounts.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.