How are franchisee's payments to any 360 Painting Advertising Cooperative determined?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
chisees 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 FDD, franchisee payments to an Advertising Cooperative are determined by the franchisee along with other franchisees and/or the franchisor participating in the cooperative, as detailed in the cooperative's bylaws or membership agreements. However, the franchisee cannot be required to spend more than the greater of $10,000 or 2% of Gross Sales per year in connection with any Advertising Cooperative. Any Franchisor-owned outlet that participates in an Advertising Cooperative will contribute on the same basis as other participants.
This means that while 360 Painting franchisees are required to participate in any established Cooperative Advertising program in their region, the specific amount they pay is determined collaboratively within the cooperative. This provides a degree of local control and flexibility in advertising spend. The $10,000 or 2% of Gross Sales limit offers a safeguard against excessive spending on cooperative advertising.
Prospective franchisees should inquire about the typical structure and operation of Advertising Cooperatives in their region, including how decisions are made regarding payment amounts and advertising strategies. Understanding the bylaws and membership agreements of existing cooperatives will be crucial for budgeting and planning local advertising efforts. Franchisees should also confirm how frequently the franchisor participates in advertising cooperatives and what basis they contribute.