What is the 360 Painting franchisee's obligation to adhere to the highest standards of ethical conduct?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Therefore, Franchisee must maintain high standards of quality and service in the operation of the Business.
Franchisee shall at all times give prompt, courteous and efficient service to customers of the Business and Franchisor may periodically adopt or modify standards relating to any aspect of customer service and Franchisee agrees to comply with any such standards.
The Business shall in all dealings with its customers, vendors and the general public adhere to the highest standards of honesty, fair dealing and ethical conduct.
If Franchisor deems that Franchisee did not fairly handle or resolve (in a manner that meets Franchisor's standards) a customer complaint, Franchisor has the right to intervene and address such customer complaint (as Franchisor may deem appropriate).
Franchisor has the right to terminate this Agreement for repeated violations of this Section 9.9.
Franchisee shall reimburse Franchisor for all costs incurred by Franchisor in providing or arranging service for a customer of the Business pursuant to this Section 9.9.
Further, upon the occurrence of any event that occurs at or otherwise involves the Business, or that occurs generally at a local, regional, national or even global scale, which has or may cause harm or injury to customers or employees, such as contagious diseases, natural disasters, terrorist acts, shootings or other acts of violence, or any other similar circumstance which may materially and adversely affect the System or the goodwill symbolized by the marks (each a "Crisis Management Event"), Franchisee must immediately inform Franchisor by telephone or electronic means, must cooperate fully with Franchisor with respect to Franchisor's response to the Crisis Management Event, and must implement such remediation plan as may be instituted by Franchisor, which may include Franchisor requiring a temporary closure of the Business as part of the Crisis Management Event remediation plan.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting franchisees must adhere to the highest standards of honesty, fair dealing, and ethical conduct in all interactions with customers, vendors, and the general public. This requirement underscores the importance of maintaining a positive brand image and fostering trust within the community. Franchisees are expected to provide prompt, courteous, and efficient service to customers, and 360 Painting may periodically adopt or modify standards relating to customer service, with which franchisees must comply.
If 360 Painting believes that a franchisee has not adequately handled a customer complaint, 360 Painting has the right to intervene and address the complaint as it deems appropriate. The franchisee is responsible for reimbursing 360 Painting for all costs incurred in providing or arranging service for a customer in such cases. Repeated violations of these standards can result in the termination of the Franchise Agreement, highlighting the seriousness with which 360 Painting views ethical conduct and customer service.
Furthermore, in the event of a crisis that could harm customers or employees, such as a contagious disease outbreak or a natural disaster, the franchisee must immediately inform 360 Painting and fully cooperate with 360 Painting's response, including implementing any remediation plan, which may involve temporarily closing the business. This demonstrates the franchisee's responsibility to protect the well-being of customers and employees and to act in a manner that safeguards the goodwill associated with the 360 Painting brand.