What does 'light commercial' mean in the context of a 360 Painting franchise?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to Sections 2.3 and 2.4, during the term of this Agreement, Franchisor shall not, nor shall Franchisor license any person other than Franchisee to, establish and operate a Business providing System services to residential or "light commercial" customers within the Protected Territory using the Marks or the System.
The term "light commercial" means buildings and facilities that are similar in size and scope to single family residences.
As the 360 Painting system is focused on the provision of residential and light commercial painting services, there are no current restrictions on the provision of commercial painting services beyond light commercial.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting defines 'light commercial' as buildings and facilities that are similar in size and scope to single-family residences. This definition is important because 360 Painting franchisees are granted a protected territory where the franchisor will not license anyone else to offer services to residential or light commercial customers.
This means a 360 Painting franchisee's protected territory includes both residential properties and smaller commercial properties, allowing them to serve a broader customer base. However, the FDD also clarifies that there are no current restrictions on providing commercial painting services beyond light commercial, meaning franchisees may be able to pursue larger commercial projects.
Prospective franchisees should understand the scope of 'light commercial' in their specific market area to assess the potential customer base within their protected territory. They should also inquire about any limitations or requirements for pursuing larger commercial projects outside the 'light commercial' definition.