factual

What rights to the trademarks will a 360 Painting franchisee receive?

360_Painting Franchise · 2025 FDD

Answer from 2025 FDD Document

t your consent.

ITEM 13: TRADEMARKS

We grant you the right to operate a Franchised Business under the name "360° PAINTING" and using the stylized mark "360° PAINTING".

We or our predecessor 360 Painting, Inc. registered the following marks on the United States Patent and Trademark Office's Principal Register, which are now owned by us.

| MARK | REGISTRATION | REGISTRATION | |---|---|---| | | NUMBER | DATE | | 360° PAINTING | 3242374 | May 15, 2007 | | | 6265633 | February 9, 2021 | We have filed required affidavits and renewals pertaining to these marks, and we intend to renew the registrations and file all appropriate affidavits for the marks at the times required by law. You may use this registered trademark and other current and future marks to operate your Franchised Business, as we may designate.

You must follow our requirements when you use the Marks. You must use only the Marks that we designate and you may use them only in the manner we authorize. You may use the Marks only in connection with

operating your Business in the Protected Territory, or in advertising for the business in the Protected Territory. You may not use the Marks as part of your corporate or other legal name.

There are currently no agreements in effect that significantly limit our rights to use or license the use of the Marks that are material to you. There are currently no effective material determinations of the USPTO, trademark trial and appeal board, any state trademark administrator or any court; pending infringement, opposition or cancellation; or pending material litigation involving the Marks. We are not aware of any infringing or prior superior of the Marks that could materially affect the use of the Marks in this state or any other state in which the 360 Painting Business is to be located. If we become aware of potentially infringing uses and we believe we can demonstrate that we have superior prior rights, we intend to send cease and desist letters to the business that are using the "360 Painting" name and may take further legal action where we believe it is warranted.

You will not receive any rights to the Marks other than the nonexclusive right to use them in the operation of your 360 Painting Business. You may only use the Marks in accordance with our standards, operating procedures and specifications. Any unauthorized use of the Marks by you is a breach of the Franchise Agreement and an infringement of our rights in the Marks. You may not contest the validity or ownership of the Marks, including any Marks that we license to you after you sign the Franchise Agreement. You may not assist any other person in contesting the validity or ownership of the Marks.

You must immediately notify us of any apparent infringement of, or challenge to your use of, any Mark, or any claim by any person of any rights in any Marks, and you may not communicate with any person other than us and our counsel regarding any infringements, challenges or claims unless you are legally required to do so; however, you may communicate with your own counsel at your own expense. We may take whatever action we deem appropriate in these situations, and we have exclusive control over any settlement or proceeding concerning any Mark. You must take any actions that, in the opinion of our counsel, may be advisable to protect and maintain our interests in any proceeding or to otherwise protect and maintain our interests in the Marks.

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.

Source: Item 13 — TRADEMARKS (FDD pages 39–41)

What This Means (2025 FDD)

According to the 2025 360 Painting Franchise Disclosure Document, a franchisee receives the right to operate a franchised business under the name "360° PAINTING" and use the stylized mark "360° PAINTING". However, this right is nonexclusive, meaning 360 Painting can also license the trademarks to others. The franchisee can only use the marks within their protected territory and in accordance with 360 Painting's standards and operating procedures. Unauthorized use of the marks constitutes a breach of the Franchise Agreement and an infringement of 360 Painting's rights. Franchisees cannot use the marks as part of their corporate or legal name. They must also notify 360 Painting of any potential infringement or challenges to the use of the marks.

360 Painting maintains control over any legal proceedings related to the trademarks, including settlements. While franchisees must take actions to protect 360 Painting's interests in the marks, 360 Painting can require franchisees to modify or discontinue the use of any mark without reimbursement for associated losses. Franchisees are generally reimbursed for expenses in legal proceedings disputing their authorized use of a mark, provided they notify 360 Painting promptly and comply with their directions. However, this reimbursement excludes expenses for removing signage or discontinuing the use of a mark, as well as legal fees for independent counsel.

The trademarks owned by 360 Painting are registered with the United States Patent and Trademark Office (USPTO). The specific marks and their registration details are listed in the FDD, including the registration numbers and dates. As of the FDD's publication, there are no agreements that significantly limit 360 Painting's rights to use or license the marks, and no material determinations by the USPTO or courts are pending. 360 Painting intends to defend its trademarks against infringement.

Franchisees must notify 360 Painting if they apply for their own trademark or service mark registrations and cannot register any marks confusingly similar to 360 Painting's marks. Franchisees must use the marks as the sole trade identification of the business, although conversion franchises may display secondary signage referring to their prior trade name for the first six months. Overall, the rights granted to franchisees are limited and subject to 360 Painting's control and requirements, which is a common practice in franchising to maintain brand consistency and protect the trademark.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.