What are examples of Continuing Fees that a 360 Painting franchisee must pay?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
hisor (without providing any compensation to Franchisee) may grant one or more franchises the right to service clients located outside of the Protected Territory, regardless of whether Franchisee has previously provided services to such clients.
- 9.20 Responsibility for Contractors. Franchisee agrees to cause any third party subcontractors engaged by Franchisee to perform work on behalf of Franchisee in respect of the Business to comply with all applicable requirements of this Section 9, including but not limited to the quality and performance standards required of Franchisee, as well as the insurance requirements set forth in Section 16.2 herein.
- 9.21 Contact Center. Franchisor maintains a contact center for the purpose of providing centralized customer service and scheduling for all businesses operating under the System and the Marks. Franchisee must utilize this contact center exclusively, comply with any rules and regulations adopted by Franchisor (in the Brand Standards Manual or otherwise) governing the contact center and pay the fees described in Section 4.6, above.
10. POINT OF SALE SYSTEM AND INFORMATION TECHNOLOGY
10.1 Hardware and Software Programs. Franchisor may establish and maintain, and require Franchisee to use, such computer hardware and software programs and databases (including, but not limited to, email accounts and platforms) as it deems advisable from time to time, which may include software programs to assist in accounting, customer service, marketing, operations or management functions of the Business, in the form and configuration determined by Franchisor in its sole discretion (collectively, "Computer Programs").
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, franchisees are required to pay several continuing fees. One such fee is related to the mandatory utilization of 360 Painting's contact center, which provides centralized customer service and scheduling. Franchisees must comply with the rules and regulations governing the contact center and pay the fees described in Section 4.6 of the FDD.
Another potential continuing fee relates to customer loyalty programs. If 360 Painting institutes a customer loyalty program, franchisees must participate and pay all participation fees due to 360 Painting or any third-party vendor. Franchisees are also required to participate in national, regional, or local advertising and promotional activities, which may entail costs to the franchisee. 360 Painting is not obligated to reimburse franchisees for these promotional costs.
Franchisees may also be required to pay dues associated with participation in Advertising Council-related activities and meetings, as well as cover their own expenses for participating in these activities. These fees contribute to the administration of the Advertising Council program, in which franchisees provide advice and counsel regarding 360 Painting's use of Marketing Fund Contributions. These examples highlight the ongoing financial obligations a franchisee can expect beyond the initial franchise fee.