What exhibit defines the territory granted in the 360 Painting Franchise Agreement?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall only have the right to use the Marks and the System in the residential geographic area described by ZIP Codes on Exhibit C-1 attached hereto (the "Protected Territory").
The Protected Territory shall include between fifty thousand (50,000) to eighty thousand (80,000) single family dwellings as of the date of this Agreement.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the specific geographic area granted to a franchisee, known as the Protected Territory, is defined by ZIP Codes listed on Exhibit C-1 of the Franchise Agreement. This Protected Territory typically includes between 50,000 and 80,000 single-family dwellings at the time the agreement is established.
It is important to note that 360 Painting retains certain rights that could affect the Protected Territory. For example, if the United States Postal Service modifies any ZIP Codes within the Protected Territory, 360 Painting can adjust the territory accordingly, potentially reducing its size or the number of people included. Additionally, while franchisees are generally restricted from promoting their business or providing services outside their Protected Territory without written permission, 360 Painting can designate National Accounts and negotiate agreements for services within a franchisee's territory.
Prospective 360 Painting franchisees should carefully review Exhibit C-1 to understand the exact ZIP Codes included in their Protected Territory and consider the potential impact of ZIP Code modifications or National Accounts on their business. Franchisees are allowed to operate only one business within their protected territory from either their home office or an approved office location. All business operations, including vehicles, must be based within the Protected Territory.