What is the purpose of the Marketing Fund for 360 Painting franchises?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
n 9.2).
Advertising and Promotion
Marketing Fund
We have a Marketing Fund to which you must contribute a fee ("Marketing Fund Contribution") in an amount equal to the greater of 2% of Gross Sales per week or $50 per week. (FA Sections 4.3 and 11.1).
We may use Marketing Fund Contributions, at our discretion, to meet any and all costs of maintaining, administering, directing, conducting, developing and preparing advertising, marketing, public relations and other promotional programs and materials, and any other activities which we believe will enhance the system, including the costs of preparing and developing print, radio and television advertising; Internet advertising; direct mail advertising; marketing surveys; employing advertising or public relations agencies; purchasing promotional items; and providing promotional and other marketing materials and services to businesses operating under the System. The coverage of the materials and programs may be local, regional or national. We may use the Marketing Fund to reimburse us or our affiliates for the internal expenses of operating an advertising department and administering the advertising program.
We will direct all Marketing Fund programs, with sole discretion over the concepts, materials and media used in the programs and the placement and allocation of them. The Marketing Fund is intended to maximize and support general public recognition, brand identity, sales and patronage of 360 Painting businesses in the United States and Canada and the System. We are not obligated to make expenditures for you, on your behalf or in your Protected Territory which are equivalent or proportional to your contributions or to ensure that any particular franchisee benefits directly or pro rata from expenditures by the Marketing Fund.
All monies paid into the Marketing Fund will be accounted for separately from our general operating revenues. We anticipate that all contributions to the Marketing Fund will be expended during the Marketing Fund's fiscal year in which they are received. The Marketing Fund is not a trust, and we assume no fiduciary duty in administering the Marketing Fund. Marketing Fund surpluses, if any, may be expended in the following fiscal year(s). We may advance money to the Marketing Fund from time to time. In this event, we may be reimbursed by the Marketing Fund for the monies advanced, including a reasonable interest rate. The Marketing Fund will not be audited, but at your request you may receive an annual report of expenditures and advertising
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–38)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting has a Marketing Fund that franchisees must contribute to. The Marketing Fund Contribution is the greater of 2% of Gross Sales per week or $50 per week. 360 Painting may use these contributions to cover the costs of advertising, marketing, public relations, and promotional programs and materials. These activities are intended to enhance the 360 Painting system, including the development of print, radio, television, and internet advertising, direct mail, marketing surveys, and promotional items. The marketing can be local, regional, or national.
360 Painting may use the Marketing Fund to reimburse themselves or their affiliates for internal expenses related to operating an advertising department and managing the advertising program. 360 Painting directs all Marketing Fund programs and has sole discretion over the concepts, materials, and media used. The Marketing Fund aims to maximize public recognition, brand identity, sales, and patronage of 360 Painting businesses in the United States and Canada.
While franchisees contribute to the Marketing Fund, 360 Painting is not obligated to spend money equivalent to a franchisee's contributions in their specific territory or ensure that any franchisee directly benefits from the fund's expenditures. All money paid into the Marketing Fund is accounted for separately from 360 Painting's general operating revenues, and the company anticipates that all contributions will be spent during the fiscal year they are received. The Marketing Fund is not a trust, and 360 Painting does not assume any fiduciary duty in administering it. Although the Marketing Fund will not be audited, franchisees can request an annual report of expenditures and advertising contributions for the most recently ended fiscal year.