Under what circumstances can 360 Painting designate a customer as a National Account?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) Franchisor may designate any customer (or prospective customer) as a National Account and to negotiate and enter into agreements to provide 360 Painting products and/or services to National Accounts, including locations within the Protected Territory.
The term "National Account" means any customer (or prospective customer) which, on its own behalf or through agents, franchisees or other third parties, owns, manages, or controls buildings or dwellings in more than one (1) location, at least one of which is not situated within any one particular franchisee's Protected Territory. (In other words, if a customer (or prospective customer) controls two buildings, and one is in Franchisee's Protected Territory while the other is not, the customer qualifies as a National Account.) Any dispute as to whether a customer is a National Account shall be determined by Franchisor in its sole and absolute discretion.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, 360 Painting has the authority to designate customers as National Accounts. Specifically, 360 Painting may designate any customer or prospective customer as a National Account and negotiate agreements to provide services to them, even if they are located within a franchisee's protected territory.
A "National Account" is defined as a customer or prospective customer who owns, manages, or controls buildings or dwellings in more than one location, with at least one location outside any particular franchisee's protected territory. For example, if a customer controls two buildings, one inside a franchisee's territory and one outside, that customer qualifies as a National Account. 360 Painting retains the sole discretion to determine whether a customer qualifies as a National Account.
This policy has implications for franchisees because 360 Painting can directly negotiate and service National Accounts, potentially within a franchisee's protected territory. However, if a National Account requires services within a franchisee's territory, 360 Painting will offer the franchisee the option to perform the services, provided the franchisee is in compliance with the franchise agreement. The franchisee has ten days to accept this option.
If the franchisee declines or fails to respond within the specified time, 360 Painting has the right to provide the services directly, through affiliates, or contract with another party. This ensures that National Accounts receive consistent service across multiple locations, but it also means that a franchisee's protected territory is not entirely exclusive, as National Accounts can be serviced by others under certain conditions.