Where in the 360 Painting Franchise Agreement can I find details about site development and other pre-opening requirements?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 1: THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES]
You will identify and solicit customers for your 360 Painting Business and we are not obligated to provide customers or accounts to you. 360 Painting Businesses are typically operated from a van or truck and a home office.
You must operate your 360 Painting Business under the terms of a franchise agreement ("Franchise Agreement"). A copy of our current form Franchise Agreement is attached as Exhibit C to this Disclosure Document. The geographic area granted to you under the Franchise Agreement is referred to as the "Protected Territory." Your 360 Painting Business must offer only authorized services and products we specify or authorize. We have the right to add, modify, or delete any services or products that you must offer or sell in your 360 Painting Business at any time.
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
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- provide you with a list of approved suppliers for equipment, signs, fixtures, opening inventory, and supplies which you will need to obtain. (FA Section 9.10);
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- assist you with setting up certain mandatory software systems, websites and other technology used in
AMENDMENT TO 360 PAINTING, LLC FRANCHISE AGREEMENT FOR THE STATE OF MARYLAND
Item 5, Additional Disclosure:
Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement.
Item 5, Additional Disclosures. The following statements are added to Item 5:
Item 5 is supplemented to reflect that we must defer the payment of all initial fees payable to us until we have fulfilled all of our material pre-opening obligations to you and you have commenced doing business pursuant to the Franchise Agreement. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 26–27)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, details regarding pre-opening requirements can be found in multiple sections. Specifically, Item 1 mentions that 360 Painting businesses are typically operated from a van or truck and a home office, indicating a low physical site development requirement.
Exhibit C to the Disclosure Document contains a copy of the current form Franchise Agreement, which would contain specific details about the obligations of both the franchisee and franchisor. Item 11 outlines that 360 Painting will provide a list of approved suppliers for equipment, signs, fixtures, opening inventory, and supplies, as detailed in FA Section 9.10. Additionally, they will assist with setting up mandatory software systems, websites, and other technologies.
For franchisees in certain states like Maryland and Illinois, amendments to the Franchise Agreement stipulate that initial fees and payments are deferred until 360 Painting completes its pre-opening obligations. This suggests that the franchisor has specific pre-opening duties that must be fulfilled before the franchisee is required to pay these fees. Prospective franchisees should carefully review Exhibit C and Item 11 of the FDD, and any state-specific addenda, to fully understand the scope of site development and pre-opening requirements.