Can 360 Painting modify the services provided for the Marketing Fund Contribution?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
s and to use or disclose such aggregate data. Franchisee acknowledges that Franchisor may require Franchisee to enter into a software license agreement whereby Franchisee will record and store data on a server hosted by a third party, and that such third-party may also have access to such data as necessary to perform such third party's obligations under the software license agreement.
11. ADVERTISING
11.1 Marketing Fund. Franchisee must pay to Franchisor, or such other entity designated by Franchisor, the Marketing Fund Contribution established under Section 4.3 herein, which amount shall be used by the Marketing Fund (defined below).
The Marketing Fund Contribution will be expended for the benefit of Franchisor, Franchisee and all other franchisees or users of the System in the United States and Canada for the production or purchase of such radio, television, print and/or other advertising materials or services as Franchisor deems necessary or appropriate, in its sole discretion, on a national, regional or local basis (the "Marketing Fund"). The expenditure of such funds for advertising is to be under the control of, and in the discretion of, Franchisor at all times, or such other entities designated by Franchisor. Franchisee understands and acknowledges that the Marketing Fund is intended to maximize and support general public recognition, brand identity, sales and patronage of 360 Painting Businesses for the benefit of all 360 Painting Businesses and that Franchisor undertakes no obligation to ensure that the Marketing Fund benefits each 360 Painting Business in proportion to its respective contributions. Franchisor agrees that all funds contributed to the Marketing Fund may be used to meet any and all costs (including, without limitation, reasonable salaries and overhead incurred by Franchisor) of developing, maintaining, administering, directing and preparing national, regional or local advertising materials, programs and public relations activities including, without limitation, the costs of preparing and conducting television, radio, magazine, billboard, newspaper, direct response literature, direct mailings, brochures, collateral advertising material, designing and implementing websites for Franchisor and/or its franchises, surveys of advertising effectiveness and other media programs and activities, employing advertising agencies to assist therewith and providing promotional brochures, decals and other marketing materials. Franchisee further acknowledges that the Marketing Fund may be used to develop, maintain, administer, direct and prepare materials, programs and public relations activities which promote the System in conjunction with one or more franchise systems which may be owned by Franchisor or Franchisor's affiliates; provided that a substantial focus of such materials, programs or activities includes the promotion of the System.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting has the authority to modify the services provided for the Marketing Fund Contribution. The funds contributed are to be used for advertising materials or services that 360 Painting deems necessary or appropriate. These services can be on a national, regional, or local basis. The expenditure of these funds is under the control and discretion of 360 Painting.
360 Painting is not obligated to ensure that each 360 Painting business benefits from the Marketing Fund in direct proportion to their contributions. The funds can cover costs related to developing, maintaining, and administering advertising materials, programs, and public relations activities. This includes salaries and overhead incurred by 360 Painting. These activities can promote the 360 Painting system in conjunction with other franchise systems owned by 360 Painting or its affiliates, as long as a substantial focus remains on promoting the 360 Painting system.
However, the Marketing Fund's assets cannot be used for advertising or promotional materials primarily intended to recruit new franchisees or develop new franchised businesses operating under the 360 Painting marks. 360 Painting may also reduce contributions to the Marketing Fund, reduce the fund's operation, or terminate the fund, distributing unspent monies to contributing franchisees in proportion to their past contributions.