Can 360 Painting require a franchisee to modify or discontinue the use of any 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 has the authority to require franchisees to modify or discontinue the use of any Mark. Furthermore, 360 Painting can mandate the use of other trademarks or service marks. This means a franchisee may be forced to rebrand their business at their own expense.
360 Painting will not be required to reimburse the franchisee for any costs associated with modifying or discontinuing the use of a Mark, nor are they obligated to cover any loss of goodwill resulting from these changes. This could create a financial burden for the franchisee, especially if the brand changes are substantial or frequent. The franchisee bears the full financial risk of rebranding, including signage, marketing materials, and other related expenses.
While 360 Painting will reimburse franchisees for expenses reasonably incurred in legal proceedings disputing the authorized use of any Mark, this is conditional. The franchisee must notify 360 Painting of the proceeding in a timely manner and comply with their directions. However, this reimbursement does not extend to expenses for removing signage or discontinuing the use of any Mark, nor does it apply to disputes where 360 Painting challenges the franchisee's use of a Mark or legal fees incurred by the franchisee for independent counsel. This indicates that the franchisee's control over legal disputes related to trademarks is limited, and financial support from 360 Painting is subject to specific conditions and exclusions.