Can the Protected Territory of a 360 Painting franchise change upon renewal?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iii) Franchisee shall execute, at Franchisor's option, Franchisor's then-current form of Franchise Agreement, which Franchise Agreement shall supersede in all respects and may contain terms and conditions substantially different from those set forth herein, including, without limitation: (a) additional fees and/or an increase in any or all Continuing Fees (as such term is hereinafter defined), (b) a change in the size or composition of the Protected Territory, (c) the renewal Franchise Agreement shall only provide for the number of additional renewal terms called for by this Agreement, and (d) mandatory minimum periodic royalty requirements that, in Franchisor's determination, take into account the thencurrent market, the maturity of the Business and its record of Gross Sales during the term;
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, the size or composition of the Protected Territory may change upon renewal. Specifically, 360 Painting has the option to offer a renewal agreement with terms and conditions substantially different from the original agreement.
This means that when a 360 Painting franchisee renews their agreement, the Protected Territory they are granted could be smaller or have a different composition than it was in the original agreement. This could impact the franchisee's potential customer base and revenue.
As a prospective franchisee, it is important to understand that the terms of the franchise agreement, including the Protected Territory, are subject to change upon renewal. Franchisees should carefully consider this factor and discuss it with 360 Painting to understand how the Protected Territory might be affected at the time of renewal.