Is retraining required for 360 Painting franchisees prior to 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;
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, franchisees are not explicitly required to complete retraining prior to renewal. However, the franchisee must meet several conditions to renew their agreement. These conditions include executing the then-current form of the Franchise Agreement, which may contain substantially different terms and conditions.
Additionally, the franchisee must complete, at their own expense and to 360 Painting's satisfaction, all necessary maintenance, updating, refurbishing, and replacement of vehicles and the business to reflect the current image and standards. The franchisee must also be current on all payments to 360 Painting, its affiliates, subsidiaries, lessors, vendors, and suppliers, and must have met these obligations throughout the term of the agreement.
While retraining is not specifically mentioned as a condition for renewal, 360 Painting retains the right to modify the franchise agreement upon renewal, potentially including new training requirements. Therefore, a prospective franchisee should inquire with 360 Painting about any potential training requirements or updates to the system that may be mandated at the time of renewal.