Must a 360 Painting franchisee meet Franchisor's then-current qualification requirement to renew?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
(vi) Franchisee shall be current in the payment of all obligations to Franchisor and to any of its affiliates and subsidiaries as well as lessors, vendors and suppliers of the Business, and must have timely met those obligations throughout the term of this Agreement;
(vii) Prior to renewal, Franchisee and/or Franchisee's supervisory and operational manager(s) shall at Franchisee's expense, attend and successfully complete to Franchisor's reasonable satisfaction any retraining program Franchisor may require;
- (viii) Franchisee must meet Franchisor's then-current qualification requirement; and
(ix) Franchisee and its owners shall execute a general release, in a form prescribed by Franchisor, of any and all claims it may have against Franchisor, including any affiliates or subsidiaries, and its and their officers, directors, shareholders, managers, members, partners, employees and agents.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, a franchisee must meet the franchisor's then-current qualification requirements to renew their franchise agreement. This means that at the time of renewal, the franchisee will need to satisfy whatever standards 360 Painting has in place at that time for franchisees.
In addition to meeting the then-current qualification requirements, the franchisee must also fulfill other conditions to renew the franchise. These conditions include providing written notice of the election to renew the franchise not less than six months nor more than nine months prior to the expiration of the initial term. The franchisee must also not be in default of any provision of the agreement when notice is given and must have consistently complied with all terms and conditions of the agreement throughout its term.
Furthermore, prior to renewal, the franchisee and/or their supervisory and operational manager(s) must attend and successfully complete any retraining program that 360 Painting may require, at the franchisee's expense. The franchisee and its owners must also execute a general release of any and all claims against 360 Painting. Failure to comply with any of these conditions will be interpreted as an election not to enter into a renewal franchise agreement.