What evidence must a 360 Painting franchisee provide each month to demonstrate compliance with the local advertising expenditure requirement?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
same basis as other participants.
Local Advertising
In addition to contributions to the Marketing Fund, each month you must spend at least $5,000 or ten percent (10%) of your Gross Sales, whichever is greater, on advertising in the Protected Territory (either by way of direct promotion or participation in an Advertising Cooperative). You must provide us with evidence each month that you have spent the required amount on local advertising. We may require that your minimum local advertising expenditure be allocated to advertising of certain types, using specific vendors, in particular channels or as a component of a broader campaign.
We may also require that any local marketing or advertising include reference (in a form we determine) to one or more franchise systems which may be owned by us or our affiliates; provided that a substantial focus of those materials, programs or activities includes the promotion of the Business.
Your advertising must be in such media, and of such type, format and other particulars as we approve, must be conducted in a dignified manner, and must conform to our standards and requirements. Any and all advertising and marketing materials (whether developed in connection with an Advertising Cooperative or otherwise) not prepared or previously approved by us must be submitted to us at least 14 days prior to any publication or run date for approval, which we may withhold for any or no reason. We will provide you with written notification of approval or disapproval within a reasonable time. If we do not notify you of approval or disapproval within 10 days of our receipt of the materials, the materials will be approved. You must discontinue the use of any approved advertising within five days of your receipt of our request to do so. You may not conduct advertising or promotion on or through the Internet/world wide web or other electronic transmission via computer without our express prior written approval. All of your advertising and promotion must be factually accurate and shall not detrimentally affect the Marks or the System, as we determine. You must use the telephone number provi
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–38)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, franchisees are required to spend a minimum amount on local advertising each month and must provide evidence of this spending to the franchisor. The minimum expenditure is the greater of $5,000 or 10% of the franchisee's Gross Sales. This advertising must occur within the franchisee's Protected Territory, either through direct promotion or participation in an Advertising Cooperative.
The franchisor has the right to specify the types of advertising, vendors, channels, or broader campaigns to which the local advertising expenditure must be allocated. All advertising materials not previously approved by 360 Painting must be submitted for approval at least 14 days before their intended publication date. The franchisor will provide written notification of approval or disapproval within a reasonable time, and if no notification is received within 10 days, the materials are considered approved. Franchisees must discontinue the use of any approved advertising within five days of receiving a request to do so from the franchisor.
This requirement ensures that 360 Painting franchisees actively promote their businesses locally, contributing to brand awareness and sales within their territories. The franchisor's oversight and approval process for advertising materials helps maintain brand consistency and quality. Franchisees should carefully track their local advertising expenditures and maintain records to provide as evidence of compliance each month. They should also be proactive in seeking approval for advertising materials to avoid delays or potential non-compliance issues.