What proof of termination of the Franchise Agreement will Telephone Companies accept from 360 Painting?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
(x) promptly take such action as may be necessary to cancel or assign to Franchisor, at Franchisor's option, any assumed name or equivalent registration filed with state, city or county authorities which contains the name "360 Painting" or any of the Marks, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement;
(xi) Upon demand by Franchisor, assign to Franchisor or its designee all of Franchisee's rights, title, and interest in the telephone numbers, telephone directory listings and advertisements, website URLs, e-mail addresses, all vendor contracts, all vendor accounts, store leases and governmental licenses or permits used for the operation of the Business.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, upon demand by 360 Painting, the franchisee must assign to 360 Painting all rights and interest in telephone numbers, directory listings, and advertisements used for the business. The franchisee must also take action to cancel any assumed name registrations containing "360 Painting" and furnish 360 Painting with evidence of compliance within 30 days of termination or expiration.
In practice, this means that as a 360 Painting franchisee, you will be required to transfer control of all phone listings and advertising to the franchisor upon termination of the agreement. This includes providing documentation to the phone companies and other relevant parties to prove that the franchise agreement has been terminated and that 360 Painting now controls those assets. The FDD does not specify exactly what form of evidence would be acceptable to the telephone companies, but it would likely include a copy of the termination agreement or a letter from 360 Painting confirming the termination.
It is important for a prospective 360 Painting franchisee to understand these obligations, as failure to comply could result in legal action or other penalties. Franchisees should maintain accurate records of all phone listings and advertising materials and be prepared to transfer them promptly upon termination of the franchise agreement. It would be prudent to discuss with 360 Painting what specific documentation they anticipate the phone companies will require as proof of termination.