How many renewal terms are 360 Painting franchisees eligible for?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a franchisee has the option to renew their franchise agreement for up to two successive ten-year periods, provided certain conditions are met. The initial term of the agreement is ten years, commencing on the effective date.
To be eligible for renewal, the franchisee must provide written notice to 360 Painting of their intent to renew, doing so no less than six months and no more than nine months before the initial term expires. Furthermore, at the time of giving notice and leading up to the expiration of the initial term, the franchisee must not be in default of any provision within the franchise agreement or any other agreements with 360 Painting, its subsidiaries, or affiliates.
Consistent compliance with all terms and conditions of the agreements throughout their terms is also a prerequisite for renewal. This means that a franchisee's adherence to the operational standards, financial obligations, and other contractual requirements is crucial for securing the opportunity to extend their franchise agreement with 360 Painting.