Can 360 Painting subcontract painting services within a franchisee's protected territory?

According to the 2025 360 Painting FDD, the franchisor has the right to subcontract painting, decorating, and wall finishing services within a franchisee's protected territory. This means that 360 Painting can hire other parties, including other franchisees, to perform painting services within an existing franchisee's exclusive area. The franchisee will not be compensated if 360 Painting chooses to do so.

This policy could significantly impact a franchisee's potential revenue and profitability, as 360 Painting could potentially take on jobs within the franchisee's territory and allocate them to others. This is especially relevant for franchisees who rely on the exclusivity of their territory to build their customer base and generate income.

This clause is included as an additional risk factor in the addendum for the state of Illinois. Prospective franchisees should carefully consider this provision and its potential impact on their business before investing in a 360 Painting franchise, especially if they are planning to operate in Illinois. It would be prudent to discuss this issue with the franchisor and current franchisees to fully understand the implications.