What is the minimum weekly Marketing Fund Contribution for a 360 Painting franchise?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
chisees of the System (the "Advertising Council") to provide advice and counsel regarding Franchisor's use of Marketing Fund Contributions. Such Advertising Council shall function in an advisory capacity only and shall not exercise any authority over the Marketing Fund or over Franchisor. Franchisee must participate in Advertising Council-related activities and meetings, pay any dues assessed for the administration of that program, and pay Franchisee's own expenses associated with participating in Advertising Council activities. Franchisor will pay its proportionate share of Advertising Council dues based on the number of 360 Painting Businesses it or its affiliates operate.
- 11.2 Local Advertising. Franchisee acknowledges and agrees that to effectively compete within the Protected Territory, Franchisee must undertake and execute an extensive marketing and advertising program designed to promote the Business within the Protected Territory. Therefore, in addition to making contributions to the Marketing Fund, Franchisee shall, at Franchisee's cost and expense, market, advertise and promote the Business in the Protected Territory and shall:
- (i) market, advertise and promote the Business in the Protected Territory only in a manner that will reflect favorably on Franchisor, Franchisee, the services and products offered by Franchisee, and the good name, goodwill and reputation of Franchisor and the Business; and
- (ii) not use any advertising or other marketing or promotional materials furnished by Franchisor or any other materials containing therein, thereon or therewith any of the Marks, for any purpose other than to market and promote the Business. Franchisee shall furthermore not copy or otherwise duplicate any advertising or promotional materials prepared by or for, or furnished by, Franchisor without Franchisor's prior written consent.
In addition to contributions to the Marketing Fund, commencing upon the conclusion of the Grand Opening Period, Franchisee shall spend during the term of this Agreement a minimum of (i) ten percent (10%) of its Gross Sales or (ii) $5,000, whichever is greater, per month on advertising in the Protected Territory (either by way of direct promotion or participation in an Advertising Cooperative, as described in Section 11.4, below). Franchisee shall provide Franchisor with evidence that such monies
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, 360 Painting franchisees are required to engage in local advertising to effectively compete within their protected territory. Following the grand opening period, a franchisee must spend a minimum of either 10% of gross sales or $5,000 per month, whichever is greater, on local advertising within their protected territory. This can be achieved through direct promotion or participation in an Advertising Cooperative.
This local advertising expenditure is separate from contributions to the Marketing Fund, which are used for national, regional, or local advertising efforts managed by the franchisor. The franchisor retains the right to direct how the franchisee's minimum local advertising expenditure is allocated, including specifying the types of advertising, vendors, channels, or broader campaigns.
In practical terms, a 360 Painting franchisee needs to budget at least $5,000 per month for local advertising, and potentially more if 10% of their gross sales exceeds that amount. They must also be prepared to provide the franchisor with evidence of these expenditures. The franchisor has significant control over how these local advertising funds are spent, which may limit the franchisee's autonomy in marketing decisions.