Is 360 Painting obligated to create a Cooperative Advertising program?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
matters beyond advertising.
Cooperative Advertising
Although we are not obligated to do so, we may create a Cooperative Advertising program for the benefit of all 360 Painting Businesses located within a particular region. We have the right to (a) allocate any Portion of the Marketing Fund to a Cooperative Advertising program, and (b) collect and designate all or a portion of the Local Advertising for a Cooperative Advertising program and we notify each franchisee of their obligations to participate, in writing. We expect that any Advertising Cooperatives will include all units operating in a single advertising market. We will determine the geographic territory and market areas for each Cooperative Advertising program and notify each franchisee of their obligations to participate, in writing. We expect that any Advertising Cooperatives will include all units operating in a single advertising market. We may require cooperatives to be changed, dissolved or merged. We have not established any requirements relating to the form, content or availability of the financial statements, if any, for a Cooperative Advertising program, but we anticipate that any financial statements prepared by a Cooperative Advertising program will be available to each franchisee who is a member and to us. You must participate in any Cooperative Advertising program established in your region, and we may establish an advertising council for you and the other franchisees in that region to self-administer the program. Franchisee's payments to any Advertising Cooperative shall be determined by Franchisee and those other franchisees of the 360 Painting System and/or Franchisor, as the case may be, who are participants in such Advertising Cooperative, as set forth in the by-laws of that Advertising Cooperative or membership, dues, participation or other payment agreements of such Advertising Cooperative. Franchisee, however, may not be required to spend more than the greater of $10,000 or 2% of Gross Sales per annum in connection with any Advertising Cooperative. (FA Section 11.4) Any Franchisor-owned outlet that participates in an Advertising Cooperative w
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–38)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, 360 Painting is not obligated to create a Cooperative Advertising program. However, 360 Painting has the option to create one for the benefit of all 360 Painting businesses within a particular region. If 360 Painting chooses to establish a Cooperative Advertising program, they have the right to allocate a portion of the Marketing Fund to it, as well as collect and designate all or a portion of the Local Advertising funds for the program.
If a Cooperative Advertising program is established in a franchisee's region, participation is mandatory. 360 Painting may also establish an advertising council for franchisees in that region to self-administer the program. The franchisee's payments to the Advertising Cooperative will be determined by the franchisee, other 360 Painting franchisees, and/or 360 Painting itself, as outlined in the cooperative's by-laws or membership agreements.
However, the franchisee's required spending on the Advertising Cooperative cannot exceed the greater of $10,000 or 2% of Gross Sales per year. Any 360 Painting-owned outlet participating in an Advertising Cooperative will contribute on the same basis as other participants. This structure allows 360 Painting to implement regional advertising strategies while ensuring franchisee participation, with a cap on the financial commitment required from franchisees.