What qualification requirements must a 360 Painting franchisee meet at the time of renewal?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
han nine months prior to the expiration of the Initial Term;
- (ii) Franchisee is not, when notice is given, and does not become prior to the expiration of the Initial Term, in default of any provision of this Agreement or any other agreement between Franchisee and Franchisor or its subsidiaries or affiliates or with any other creditor or supplier of the Business, and Franchisee must have consistently complied with all the terms and conditions of this Agreement and all such other agreements throughout their terms;
- (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;
- (iv) Franchisee shall pay a renewal fee equal to twenty-five percent (25%) of the thencurrent Franchise Fee (as such term is hereinafter defined) or Fifteen Thousand ($15,000), whichever is greater; provided, however, that Franchisee shall not also be required to pay an initial franchise fee under such renewal Franchise Agreement;
- (v) Franchisee shall complete, at its own expense and to Franchisor's satisfaction, all maintenance, updating, refurbishing and replacement of the Vehicles and all maintenance, refurnishing, renovation, modernizing and remodeling of the Bu
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, a franchisee must meet several qualifications to renew their franchise agreement. The franchisee must be current on all payments to 360 Painting, its affiliates, and also to lessors, vendors, and suppliers. Furthermore, the franchisee must have consistently met these payment obligations throughout the entire term of the existing agreement.
In addition to financial obligations, the franchisee must complete any required maintenance, updates, refurbishing, and replacements to vehicles and the business location. This includes modernizing and remodeling the business to reflect 360 Painting's current image and standards, potentially requiring the purchase of additional vehicles or new equipment. These updates must be completed at the franchisee's own expense and to 360 Painting's satisfaction.
Finally, at 360 Painting's option, the franchisee will be required to execute the then-current form of the Franchise Agreement. This new agreement may contain terms and conditions substantially different from the original, including changes to fees, the protected territory, the number of renewal terms, and mandatory minimum royalty requirements. The franchisee will also need to pay a renewal fee equal to 25% of the then-current franchise fee or $15,000, whichever is greater.