Which section of the 360 Painting Franchise Agreement outlines the franchisee's obligations regarding opening the franchise?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, Franchisor hereby grants to Franchisee the non-exclusive right and license, and Franchisee undertakes the obligation, to develop and operate a 360 Painting Business and to use solely in connection therewith, the Marks and the System in accordance with the terms and conditions of this Agreement only within the Protected Territory (as defined below). Franchisee agrees to use the Marks and System, as they are changed, improved and further developed by Franchisor from time to time. Unless otherwise agreed to in writing by Franchisor, Franchisee has three months from the Effective Date to complete the initial training as required by Section 13.1 and to commence operation of the Business. If Franchisee fails to complete initial training and commence operation of the Business within this time period, Franchisor may terminate this Agreement, as provided in Sections 19.2(i) and 19.2(ii), below. Franchisee must obtain Franchisor's written approval prior to commencing operation of the Business.
2. TERRITORY
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 26–27)
What This Means (2025 FDD)
According to the 2025 FDD, Section 1 of the 360 Painting Franchise Agreement outlines the franchisee's obligations regarding opening the franchise. Specifically, it states that the franchisee has three months from the Effective Date to complete the initial training required by Section 13.1 and to commence operation of the Business.
If the franchisee fails to complete the initial training and commence business operations within this three-month period, 360 Painting has the right to terminate the agreement, as detailed in Sections 19.2(i) and 19.2(ii). The franchisee must also obtain written approval from 360 Painting before commencing business operations.
Item 11 also mentions that a franchisee must open their 360 Painting business and be operational within three months after signing the Franchise Agreement, referencing FA Section 1. It also notes that the franchisee must plan to complete the 3-week training program before opening. 360 Painting may terminate the Franchise Agreement if the franchisee fails to open the business in a timely manner. The FDD estimates that the typical length of time between signing the Franchise Agreement and opening a 360 Painting Business is approximately 60 days.