Is a 360 Painting franchisee allowed to operate outside of their Protected Territory?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
ee. You will be compensated only for the services that you provide.
You may not solicit customers or advertise outside of your Protected Territory, and you may not advertise on the Internet, without our prior written consent. You have no right to use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, to make sales outside your Protected Territory. Any such activities will be a material default under your Franchise Agreement.
You must obtain our written consent and approval before opening an office location other than your home office. The conditions under which we will approve an office re-location are whether (a) it is located within the Protected Territory (which will be designated in reference to your home address), and (b) it is suitable for use of the equipment required in the Business and for storage of equipment and supplies. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
If the US Postal Service modifies any of the zip codes encompassed by the Protected Territory or which represent the area included in the Protected Territory, we may modify the Protected Territory to account for the modification.
Source: Item 12 — TERRITORY (FDD pages 38–39)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, franchisees are generally restricted from soliciting customers or advertising outside of their Protected Territory. The FDD specifies that franchisees must operate their 360 Painting business only within their Protected Territory, utilizing their home office (or other approved office space) and vehicles, all of which must be located within the designated area. The Protected Territory is defined by zip codes and contains between 50,000 and 80,000 single-family dwellings.
360 Painting franchisees are prohibited from advertising on the Internet or using other channels of distribution, such as catalog sales or telemarketing, to make sales outside their Protected Territory without prior written consent from the franchisor. Engaging in such activities constitutes a material default under the Franchise Agreement. This restriction ensures that franchisees focus their efforts on developing their business within their assigned territory and do not encroach upon the territories of other franchisees.
However, 360 Painting may enter into agreements with National Accounts that require services in a franchisee's Protected Territory. In such cases, the franchisee is offered the right to provide these services, provided they are in compliance with the Franchise Agreement. The franchisee has 10 days to accept or reject the opportunity. If the franchisee declines or fails to respond, 360 Painting may offer the opportunity to another franchisee or a third party. This clause allows 360 Painting to service large, multi-location clients while still giving franchisees the first option to fulfill the work within their territory.
It's important to note that 360 Painting retains the right to conduct marketing and promotional activities, including those related to National Accounts, outside a franchisee's Protected Territory. They can also use the Marks and System to offer services and products through various channels, including the Internet and direct marketing, both within and outside the Protected Territory. This allows 360 Painting to maintain a broader market presence and explore different sales channels without infringing on the franchisee's territory, as long as it doesn't involve direct solicitation or advertising by the franchisee.