Does 360 Painting grant franchisees an exclusive territory?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 12: TERRITORY]
When you sign the Franchise Agreement, we will grant you a Protected Territory, which we define as the residential geographic area in which you will have the right to use the Marks and the System to operate your 360 Painting Business and which will be set forth in your Franchise Agreement. 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. Your Protected Territory will be delineated by zip codes and will consist of a geographic area containing not less than 50,000 to 80,000 single family dwellings.
[Item 12: TERRITORY]
We may enter into agreements, periodically, with customers that we consider "National Accounts" (that is, customers that contract with us or with our affiliate for the provision of services at more than one location). If we enter into an agreement with a National Account that requires services in your Protected Territory and you are then in compliance with the Franchise Agreement, we will offer you the right to provide the services on the terms provided in the contract with the National Account. You will have 10 days to accept or reject the opportunity to provide services to the National Account on the terms contained in the National Account contract. If you decline the opportunity or fail to respond within 10 days, we may provide the services directly or offer the opportunity to another franchisee or a third party. If any National Account informs us that your services do not meet their standards or their selection criteria, we may offer the opportunity to service the National Account to another franchisee. You will be compensated only for the services that you provide.
You may not solicit customers or advertise outside of your Protected Territory, and you may not advertise on the Internet, without our prior written consent. You have no right to use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, to make sales outside your Protected Territory. Any such activities will be a material default under your Franchise Agreement.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Source: Item 12 — TERRITORY (FDD pages 38–39)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. However, 360 Painting does grant a "Protected Territory," defined as the residential geographic area where franchisees have the right to use 360 Painting's marks and system. This territory is delineated by zip codes and contains between 50,000 and 80,000 single-family dwellings. Franchisees must operate their 360 Painting business only within their Protected Territory from a home office (or other approved office space) and vehicles located within that territory.
Despite the Protected Territory, 360 Painting franchisees may face competition from other franchisees, outlets owned by 360 Painting, other distribution channels, or competitive brands controlled by 360 Painting. 360 Painting retains the right to operate or license others to operate 360 Painting businesses outside a franchisee's Protected Territory, operate similar businesses under different marks inside or outside the Protected Territory, and use the marks and system for marketing activities outside the Protected Territory.
360 Painting may also enter into agreements with National Accounts requiring services within a franchisee's Protected Territory. If a franchisee is in compliance with the Franchise Agreement, 360 Painting will offer them the right to provide these services under the terms of the National Account contract. The franchisee has 10 days to accept or reject the opportunity. If the franchisee declines or fails to respond, 360 Painting may offer the opportunity to another franchisee or a third party.
Franchisees are restricted from soliciting customers or advertising outside their Protected Territory and from advertising on the Internet without prior written consent from 360 Painting. They also cannot use other distribution channels like the Internet, catalog sales, or telemarketing to make sales outside their Protected Territory. Any violation of these restrictions constitutes a material default under the Franchise Agreement.