Does 360 Painting have established governing documents for the Advertising Council?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
We have formed an advisory council consisting of 360 Painting Businesses (the "Advertising Council") in which you may be required to participate and provide advice and counsel regarding our use of the Marketing Fund. We select members of the Advertising Council based on a variety of objective and subjective factors, including volume of business, collaborative disposition, availability, and personal interest, among others. The Advertising Council functions in an advisory capacity only and does not exercise authority over the Marketing Fund or over us. We have not established any governing documents for the Advertising Council. We reserve the right to change or dissolve the advertising council. You may be required to pay your own expenses associated with participating in Advertising Council activities and pay dues assessed for the administration of the Advertising Council. We will pay our proportionate share of Advertising Council dues based on the number of 360 Painting Businesses we or our affiliates operate. From time to time, we may also seek input or feedback from the Advertising Council on System operational issues or other matters beyond advertising.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–38)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting has formed an advisory council called the Advertising Council, which consists of 360 Painting businesses. Franchisees may be required to participate in this council to provide advice regarding the use of the Marketing Fund. Members are selected based on factors such as business volume, collaboration, availability, and personal interest. However, the Advertising Council functions only in an advisory capacity and does not have authority over the Marketing Fund or 360 Painting itself.
Importantly, 360 Painting has not established any governing documents for the Advertising Council. The company retains the right to change or dissolve the council at its discretion. Franchisees may be required to cover their own expenses for participating in Advertising Council activities and pay dues for its administration. 360 Painting will pay its share of these dues based on the number of 360 Painting businesses it operates.
This lack of governing documents means that the structure and operation of the Advertising Council are subject to change at the discretion of 360 Painting. A prospective franchisee should consider this when evaluating the level of influence they might have within the council and the stability of its operations. It would be prudent for a potential franchisee to discuss with 360 Painting the typical activities of the Advertising Council, the expected time commitment for members, and the potential costs involved.