What is the initial term length for a 360 Painting franchise agreement?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
3. TERM AND RENEWAL
3.1 Initial Term. Unless terminated earlier in accordance with the terms and conditions set forth herein, this Agreement and the franchise granted hereunder shall have an initial term of ten (10) years commencing on the Effective Date (the "Initial Term").
3.2 Renewal. Upon the expiration of the Initial Term, Franchisee shall have the right to renew the franchise granted hereunder for up to two (2) successive ten (10) - year periods, provided that all of the following conditions are met:
(i) Franchisee gives Franchisor written notice of its election to renew the franchise not less than six months nor more than nine months prior to the expiration of the Initial Term;
(ii) Franchisee is not, when notice is given, and does not become prior to the expiration of the Initial Term, in default of any provision of this Agreement or any other agreement between Franchisee and Franchisor or its subsidiaries or affiliates or with any other creditor or supplier of the Business, and Franchisee must have consistently complied with all the terms and conditions of this Agreement and all such other agreements throughout their terms;
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the initial term of the franchise agreement is ten years, beginning on the effective date. This means a franchisee will operate their 360 Painting business under the terms of the agreement for that period unless the agreement is terminated earlier.
At the end of the initial ten-year term, a franchisee has the option to renew the agreement for up to two additional ten-year periods. However, to be eligible for renewal, the franchisee must meet several conditions.
These conditions include providing written notice to 360 Painting of their intent to renew at least six months but no more than nine months before the initial term expires. The franchisee must also be in good standing, with no outstanding defaults on the agreement or any other agreements with 360 Painting or its affiliates. Furthermore, the franchisee may be required to sign 360 Painting's then-current form of the franchise agreement, which may contain significantly different terms and conditions.