Can 360 Painting require cooperatives to be changed, dissolved, or merged?

According to the 2025 360 Painting Franchise Disclosure Document, 360 Painting retains the authority to mandate changes, dissolution, or mergers of advertising cooperatives. 360 Painting may create Cooperative Advertising programs for the benefit of all 360 Painting Businesses located within a particular region.

This means that as a 360 Painting franchisee, you may be required to participate in cooperative advertising programs established in your region. These cooperatives are intended to include all units operating in a single advertising market, as defined by 360 Painting. Franchisees must adhere to the cooperative's bylaws or membership agreements, but are not required to spend more than the greater of $10,000 or 2% of Gross Sales per annum in connection with any Advertising Cooperative.

The franchisor's ability to alter or dissolve cooperatives gives them significant control over regional advertising strategies. While franchisees must participate, their financial commitment to the cooperative is capped. Franchisees should factor in the potential for changes to the advertising cooperative structure when assessing their marketing budget and strategy.