Will 360 Painting reimburse a franchisee for costs incurred modifying or discontinuing the use of a Mark?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
We can require you to modify or discontinue the use of any Mark and to use other trademarks or service marks. We will not be required to reimburse you for modifying or discontinuing the use of a Mark or for substituting another trademark or service mark for a discontinued Mark. We are not obligated to reimburse you for any loss of goodwill associated with a modified or discontinued Mark.
We will reimburse you for all of your expenses reasonably incurred in any legal proceeding disputing your authorized use of any Mark, but only if you notify us of the proceeding in a timely manner and you have complied with our directions with regard to that proceeding. We have the right to control the defense and settlement of that proceeding. Our reimbursement does not include your expenses for removing signage or discontinuing your use of any Mark. Our reimbursement also does not apply to any disputes where we challenge your use of a Mark. Our reimbursement does not apply to legal fees you incur in seeking separate, independent legal counsel.
Source: Item 13 — TRADEMARKS (FDD pages 39–41)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, 360 Painting can require a franchisee to modify or discontinue the use of any mark and substitute it with another trademark or service mark. However, 360 Painting is not required to reimburse the franchisee for the costs associated with modifying or discontinuing the use of a mark, or for substituting a discontinued mark with another. Additionally, 360 Painting is not obligated to reimburse a franchisee for any loss of goodwill associated with a modified or discontinued mark.
This policy means that if 360 Painting decides to change its branding or requires franchisees to update their signage or marketing materials due to trademark issues, the franchisee will bear the financial burden of these changes. This includes the direct costs of modifying signs, stationery, and other branded materials, as well as any potential loss of business due to brand confusion or the need to re-establish brand recognition in their local market.
While 360 Painting will reimburse a franchisee for expenses reasonably incurred in a legal proceeding disputing the authorized use of any mark, this is only if the franchisee notifies 360 Painting of the proceeding in a timely manner and complies with their directions. This reimbursement specifically excludes expenses for removing signage or discontinuing the use of any mark, as well as legal fees incurred for seeking separate, independent legal counsel. This indicates that 360 Painting retains control over trademark-related legal matters and will only cover costs when the franchisee follows their guidance, but will not cover costs associated with rebranding due to trademark disputes.