Does 360 Painting generally own the location of a franchisee's business?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Site Selection
You may operate your Business from your home, provided that it is equipped with a high-speed Internet connection that is "always on" (such as DSL or cable modem), and that you make adequate provisions for storage of equipment and supplies. If you prefer, you may locate your Business elsewhere provided that the proposed alternate location meets our specifications and is expressly approved by us in writing. The criteria that we use in deciding whether to approve a location outside of your home are whether (a) it is located within the Protected Territory (which will be designated in reference to your home address), and (b) it is suitable for use of the equipment required in the Business and for storage of equipment and supplies. In all cases, you must operate your franchise only in the Protected Territory and only from your home office (or other approved office space) and your Vehicles, and your home office (or other approved office space) and all Vehicles must be located in the Protected Territory at all times.
We will respond to your request for approval within 30 days after you provide us with the information necessary for us to determine that it will otherwise satisfy our criteria. There is no time limit for the Franchisor to approve or disapprove a site. We will not unreasonably withhold our approval of your proposed location outside of your home; however, you must operate the Business from your home until we approve an alternative location in writing. In addition, you must operate from your home if we do not approve or agree upon an alternative location in writing. We do not have to agree with you on a site if you operate from your home. However, if we and you cannot agree on a site outside your home, but you proceed to operate at an unapproved site outside your home, then we may issue you a default under your Franchise Agreement, which if not timely cured may result in your Franchise Agreement being terminated, you have having to cease operating the Business and you forfeiting your initial franchise fee to us. We do not generally own the location of your Business. We do not provide any assistance to you in conforming the premises of your Business to local ordinances and building codes or obtaining any required permits.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–38)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting franchisees are not generally required to lease or purchase their business location from the franchisor. Franchisees can operate the business from their home, provided they have a high-speed internet connection and adequate storage for equipment and supplies.
If a franchisee prefers to operate from a different location, they must obtain written approval from 360 Painting. The franchisor will assess whether the proposed location is within the franchisee's protected territory and suitable for the business's equipment and storage needs. The FDD states that 360 Painting will not unreasonably withhold approval of a proposed location outside of the franchisee's home.
However, the franchisee must continue to operate from their home until an alternative location is approved in writing by 360 Painting. If the franchisee operates at a site not approved by 360 Painting, the franchisor may issue a default notice, and failure to correct this may lead to termination of the Franchise Agreement and forfeiture of the initial franchise fee. The franchisee is solely responsible for ensuring the business premises comply with local ordinances and building codes and for obtaining any necessary permits.