Who determines the modifications needed to the vehicles of a 360 Painting franchisee after termination?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
- (v) if Franchisee retains possession of the Vehicles, at Franchisee's expense, make such reasonable modifications to the exterior and interior of the Vehicles as Franchisor requires to eliminate its identification as a Mobile Unit operated in connection with a 360 Painting Business and to avoid violation of the non-compete provision;
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, upon termination of the Franchise Agreement, 360 Painting franchisees are obligated to modify their vehicles to remove any branding or identification with the 360 Painting system. The specific modifications required are determined by 360 Painting.
This means that if a franchisee's agreement ends, 360 Painting has the authority to dictate what changes must be made to the franchisee's vehicles. These modifications are intended to eliminate any visual association with the 360 Painting brand and to ensure compliance with non-compete provisions, preventing the former franchisee from misleading the public into thinking they are still part of the 360 Painting franchise.
The franchisee is responsible for covering the costs associated with these modifications. This could include removing logos, changing paint schemes, or altering any other features that identify the vehicle as part of the 360 Painting brand. Franchisees should factor in these potential expenses when considering the long-term financial implications of the franchise agreement.
This requirement is fairly standard in franchising, as franchisors need to protect their brand identity and prevent confusion in the marketplace after a franchise agreement ends. Prospective 360 Painting franchisees should carefully review the terms of the franchise agreement regarding termination and post-termination obligations to fully understand their responsibilities and potential costs.