What is the formula for calculating the renewal fee for a 360 Painting franchise?

According to the 2025 FDD, a 360 Painting franchisee must pay a renewal fee if they choose to renew their franchise agreement. The renewal fee is calculated as the greater of two amounts: 25% of the then-current franchise fee or $15,000. The FDD also specifies that the franchisee will not be required to pay an initial franchise fee in addition to the renewal fee.

For a prospective 360 Painting franchisee, this means that the cost to renew the franchise will depend on what the franchise fee is at the time of renewal. If the franchise fee has increased significantly since the initial agreement, the renewal fee could be substantially higher than $15,000. Conversely, if the franchise fee remains relatively stable or decreases, the renewal fee will likely be $15,000.

It's important to note that the renewal is contingent upon meeting other conditions, such as providing written notice within a specific timeframe, remaining in good standing with all financial obligations, and completing any required updates or renovations to meet current brand standards. These additional requirements ensure that franchisees who renew are committed to maintaining the quality and image of the 360 Painting brand.

Franchise agreements often include renewal fees, and the structure used by 360 Painting is fairly typical. Renewal fees are intended to compensate the franchisor for the continued use of the brand name, systems, and support provided during the renewal term. Prospective franchisees should carefully consider the potential renewal fee and other renewal conditions when evaluating the overall cost and benefits of investing in a 360 Painting franchise.