Is a 360 Painting franchisee required to participate in any Cooperative Advertising program established in their region?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
vailable to each franchisee who is a member and to us. You must participate in any Cooperative Advertising program established in your region, and we may establish an advertising council for you and the other franchisees in that region to self-administer the program. Franchisee's payments to any Advertising Cooperative shall be determined by Franchisee and those other franchisees of the 360 Painting System and/or Franchisor, as the case may be, who are participants in such Advertising Cooperative, as set forth in the by-laws of that Advertising Cooperative or membership, dues, participation or other payment agreements of such Advertising Cooperative. Franchisee, however, may not be required to spend more than the greater of $10,000 or 2% of Gross Sales per annum in connection with any Advertising Cooperative. (FA Section 11.4) Any Franchisor-owned outlet that participates in an Advertising Cooperative w
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–38)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, franchisees must participate in any Cooperative Advertising program established for their region. 360 Painting may create these programs to benefit all businesses in a specific area. The franchisor decides the geographic territory and market areas for each cooperative and will inform franchisees of their participation requirements in writing.
Franchisees' payments to the Cooperative Advertising program are determined by the franchisees and/or 360 Painting, as outlined in the cooperative's bylaws or payment agreements. However, a franchisee cannot be required to spend more than the greater of $10,000 or 2% of their gross sales per year on the Cooperative Advertising program. Any 360 Painting-owned outlets participating in the cooperative will contribute on the same basis as other participants.
In addition to Cooperative Advertising, 360 Painting franchisees must also spend a minimum amount on local advertising. Each month, franchisees are required to spend at least $5,000 or 10% of their gross sales, whichever is greater, on advertising within their protected territory. This local advertising can be through direct promotion or participation in an Advertising Cooperative.