What happens if a 360 Painting franchisee elects not to provide services to a National Account?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iii) If Franchisee elects not to provide services to a National Account in conformity with the terms of the National Account contract, or fails to make an election within the time specified by Franchisor, Franchisor shall have the right, exercisable in its sole discretion, to (a) provide, directly, through its affiliates or any other franchisee utilizing the Marks, 360 Painting products and/or services to the National Account location(s) within the Protected Territory on the terms and conditions contained in the bid or contract between Franchisor and the National Account; and/or (b) contract with another party to provide such 360 Painting products and/or services to the National Account location(s) within the Protected Territory on the terms and conditions contained in the bid or contract between Franchisor and the National Account, utilizing the Marks or any other proprietary marks.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, if a franchisee chooses not to provide services to a National Account or fails to respond within the specified timeframe, 360 Painting has the right to provide those services themselves. Specifically, 360 Painting can either directly offer services through its affiliates or other franchisees, or contract with another party to deliver the services to the National Account within the franchisee's protected territory. This would be done under the terms and conditions outlined in the original bid or contract between 360 Painting and the National Account.
This policy ensures that 360 Painting can maintain consistent service delivery to National Accounts, which are defined as customers with locations in multiple territories. By retaining the right to service these accounts directly or through other parties, 360 Painting protects its relationships with large, multi-location clients. The franchisee's protected territory does not prevent 360 Painting from working with National Accounts.
For a prospective franchisee, this means that while you have a protected territory, your ability to service clients within that territory is subject to 360 Painting's right to manage National Accounts. If you are unable or unwilling to service a National Account, 360 Painting can step in or assign the work to someone else. This is important to consider when evaluating the potential revenue and workload within your protected territory, as National Accounts could represent a significant portion of the business.