For what sums is the 360 Painting franchisee liable to telephone companies after the transfer?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
- (xi) Upon demand by Franchisor, assign to Franchisor or its designee all of Franchisee's rights, title, and interest in the telephone numbers, telephone directory listings and advertisements, website URLs, e-mail addresses, all vendor contracts, all vendor accounts, store leases and governmental licenses or permits used for the operation of the Business.
Simultaneously with Franchisee's execution of this Agreement, Franchisee will execute the Internet Web Sites and Listings Agreement attached hereto as Exhibit C-3 and the Telephone Listing Agreement attached hereto as Exhibit C-4;
- (xii) fulfill all of Franchisee's obligations to customers under all outstanding contracts and any warranties provided for in this Agreement notwithstanding the expiration or termination of the same.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
Based on the 2025 360 Painting Franchise Disclosure Document, the franchisee is obligated to assign their rights, title, and interest in telephone numbers, directory listings, and advertisements to 360 Painting or its designee upon demand. The document does not specify the exact sums the franchisee would be liable for to telephone companies after a transfer.
However, the franchisee is responsible for fulfilling obligations to customers under outstanding contracts, even after the agreement expires or terminates. This suggests potential liability for costs related to transferring or maintaining telephone services during and after the transfer process. The Telephone Listing Agreement, which the franchisee must execute, likely contains further details about these obligations.
To fully understand the financial implications, a prospective 360 Painting franchisee should carefully review Exhibit C-4, the Telephone Listing Agreement, and clarify with 360 Painting what specific costs and fees they might incur related to telephone services after transferring their rights. This includes understanding who is responsible for any outstanding balances or early termination fees associated with existing telephone contracts.