On what page of the 360 Painting FDD can I find information regarding the grant of a franchise?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
1. GRANT OF FRANCHISE
During the term of this Agreement, Franchisor hereby grants to Franchisee the non-exclusive right and license, and Franchisee undertakes the obligation, to develop and operate a 360 Painting Business and to use solely in connection therewith, the Marks and the System in accordance with the terms and conditions of this Agreement only within the Protected Territory (as defined below). Franchisee agrees to use the Marks and System, as they are changed, improved and further developed by Franchisor from time to time. Unless otherwise agreed to in writing by Franchisor, Franchisee has three months from the Effective Date to complete the initial training as required by Section 13.1 and to commence operation of the Business. If Franchisee fails to complete initial training and commence operation of the Business within this time period, Franchisor may terminate this Agreement, as provided in Sections 19.2(i) and 19.2(ii), below. Franchisee must obtain Franchisor's written approval prior to commencing operation of the Business.
2. TERRITORY
- 2.1 Protected Territory.
Franchisee shall only have the right to use the Marks and the System in the residential geographic area described by ZIP Codes on Exhibit C-1 attached hereto (the "Protected Territory").
The Protected Territory shall include between fifty thousand (50,000) to eighty thousand (80,000) single family dwellings as of the date of this Agreement.
If the United States Postal Service modifies any of the ZIP Codes encompassed by the Protected Territory or which represent the area included the Protected Territory, Franchisor may modify the Protected Territory to account for such ZIP Code modification(s).
The modified Protected Territory may result in fewer people being included in or a smaller geographic area being represented by the Protected Territory.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 360 Painting FDD, information regarding the grant of a franchise can be found on page 108. Specifically, Section 1 of the franchise agreement outlines the terms and conditions under which 360 Painting grants the franchisee the non-exclusive right and license to develop and operate a 360 Painting business. This section also specifies that the franchisee must use the Marks and the System within the Protected Territory.
The agreement stipulates that the franchisee has three months from the Effective Date to complete initial training, as required by Section 13.1, and to commence business operations. Failure to meet these requirements may result in the termination of the agreement by 360 Painting, as detailed in Sections 19.2(i) and 19.2(ii). Additionally, the franchisee must obtain written approval from 360 Painting before starting business operations.
Section 2.1 further defines the Protected Territory as a residential geographic area described by ZIP Codes in Exhibit C-1, including between 50,000 to 80,000 single-family dwellings as of the agreement date. 360 Painting retains the right to modify the Protected Territory to account for any ZIP Code modifications by the United States Postal Service, which may result in a smaller geographic area or fewer people included in the Protected Territory.