Is a 360 Painting franchisee required to pay dues for the administration of the Advertising Council?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
to solicit new franchise sales.
Advertising Council
We have formed an advisory council consisting of 360 Painting Businesses (the "Advertising Council") in which you may be required to participate and provide advice and counsel regarding our use of the Marketing Fund. We select members of the Advertising Council based on a variety of objective and subjective factors, including volume of business, collaborative disposition, availability, and personal interest, among others. The Advertising Council functions in an advisory capacity only and does not exercise authority over the Marketing Fund or over us. We have not established any governing documents for the Advertising Council. We reserve the right to change or dissolve the advertising council. You may be required to pay your own expenses associated with participating in Advertising Council activities and pay dues assessed for the administration of the Advertising Council. We will pay our proportionate share of Advertising Council dues based on the number of 360 Painting Businesses we or our affiliates operate.
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 FDD, franchisees may be required to pay dues for the administration of the Advertising Council. While participation in the Advertising Council is not mandatory, 360 Painting selects members based on factors like business volume and interest. If a franchisee is selected to participate, they may have to cover their own expenses related to council activities and pay any dues assessed for the council's administration. The franchisor, 360 Painting, will also pay its share of these dues based on the number of 360 Painting businesses it operates.
The Advertising Council serves in an advisory role, providing input on the use of the Marketing Fund, but it does not have authority over the fund or 360 Painting itself. The franchisor retains the right to modify or dissolve the council. Franchisees should be aware that participation in the Advertising Council could entail additional costs beyond the standard franchise fees.
In addition to the Advertising Council, 360 Painting may establish Cooperative Advertising programs in specific regions, requiring franchisees to participate. These programs are self-administered by an advertising council consisting of franchisees in the region. Franchisee contributions to the Advertising Cooperative are determined by the participants, but cannot exceed the greater of $10,000 or 2% of gross sales per year. This structure is fairly typical in franchising, where advertising councils and co-ops allow franchisees to have some input into marketing efforts.