What is the 360 Painting franchisee's obligation to undertake a marketing and advertising program?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.15 Participation in Loyalty Programs and Promotions. If Franchisor institutes a customer loyalty program, participate in such customer loyalty program and pay all participation fees due to Franchisor or any third-party vendor, and also participate in all national, regional or local advertising and promotional activities Franchisor requires.
Franchisee understands that Franchisor implements promotions such as discount coupons and other activities intended to enhance customer awareness for 360 Painting Businesses on a national, regional or local level.
Franchisee understands that its participation in these programs is essential to its success and that its participation may entail some cost to Franchisee.
Franchisee agrees that Franchisor has no obligation to reimburse Franchisee for any costs it incurs due to its mandatory participation in these special promotional programs.
11.3 Advertising Cooperatives. In connection with the Business and any and all other 360 Painting Businesses owned or operated by Franchisee, Franchisee shall participate, if required by Franchisor, in any local, regional or national cooperative advertising group, consisting of other 360 Painting businesses, when and if any such groups are created (each, an "Advertising Cooperative").
The particular Advertising Cooperative(s) in which Franchisee may be required to participate shall be designated by Franchisor in its sole discretion (which designations may be based upon, without limitation, the particular Designated Market Area or the Area of Dominant Influence, as those terms are used in the advertising industry, where the 360 Painting Businesses operated by Franchisee are located).
Franchisee's payments to any Advertising Cooperative shall be determined by Franchisee and those other franchisees of the 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.
Amounts paid to an Advertising Cooperative shall be credited against payments Franchisee is otherwise required to make for local advertising as required by Section 11.3 above.
Any payments to an Advertising Cooperative shall be in addition to the amounts required to be paid or spent under Sections 11.1 and 11.2 hereof.
Franchisee further acknowledges that Franchisor may require that any Advertising Cooperative participate in marketing or advertising programs which may include one or more franchise systems which may be owned by Franchisor or Franchisor's affiliates; provided that a substantial focus of such programs includes the promotion of the System.
(iii) Operate and advertise the Business only under the name "360 Painting" or such other Marks as Franchisor may designate from time to time, without prefix or suffix, except as specifically instructed by Franchisor to describe the location of the Business;
(vii) Franchisee shall be required to use the Marks on all materials representing the Business, including without limitation business cards, stationary, e-mail correspondence, apparel, checks, proposals, contracts, signage, Vehicle advertising and marketing and promotional materials, provided
Franchisee (1) accurately depicts the Marks on the materials, (2) includes a statement on the materials indicating that the business is independently owned and operated by Franchisee, (3) does not use the Marks in connection with any other trademarks, trade names or service marks unless specifically approved by Franchisor in writing prior to such use, and (4) makes available to Franchisor, upon its request, a copy of any materials depicting the Marks.
Franchisor or its authorized representatives may at any time during normal business hours inspect the Vehicles or enter the Business and remove any objectionable signs, decals or advertising media.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, franchisees have several obligations regarding marketing and advertising. Franchisees must participate in national, regional, or local advertising and promotional activities required by 360 Painting. This participation is considered essential for the franchisee's success, and it may entail costs that 360 Painting is not obligated to reimburse. Franchisees must also participate in any customer loyalty programs that 360 Painting institutes, and pay any associated participation fees.
360 Painting requires franchisees to participate in any local, regional, or national cooperative advertising groups (Advertising Cooperatives) if the franchisor requires it. The specific Advertising Cooperative will be designated by 360 Painting. While the franchisee and other participants determine payments to the Advertising Cooperative, the franchisee cannot be required to spend more than the greater of $10,000 or 2% of Gross Sales per annum in connection with any Advertising Cooperative. Amounts paid to an Advertising Cooperative can be credited against local advertising requirements, but are in addition to payments for the Marketing Fund.
Franchisees must operate and advertise the 360 Painting business only under the name "360 Painting" or other designated marks, without unauthorized prefixes or suffixes. The franchisee must use the marks on all materials representing the business, including business cards, stationery, email, apparel, checks, proposals, contracts, signage, vehicle advertising, and marketing materials. The franchisee must accurately depict the marks, indicate that the business is independently owned and operated, and not use the marks with other trademarks without prior written approval. Franchisees must also allow 360 Painting to inspect vehicles or the business and remove any objectionable advertising media.
These obligations ensure consistency in branding and marketing efforts across all 360 Painting franchises, which benefits the entire system. However, franchisees should be aware of the potential costs associated with mandatory participation in advertising and promotional programs, as well as the restrictions on how they can use the 360 Painting brand and marks in their advertising.