Under what circumstances might 360 Painting modify a franchisee's Protected Territory?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
If the US Postal Service modifies any of the zip codes encompassed by the Protected Territory or which represent the area included in the Protected Territory, we may modify the Protected Territory to account for the modification. The modified Protected Territory may result in fewer people being included in or a smaller geographic area being represented by the Protected Territory.
Except as described above, you are not required to achieve a sales or market penetration quota and we cannot change the Protected Territory without your consent.
Source: Item 12 — TERRITORY (FDD pages 38–39)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the franchisor can modify a franchisee's protected territory under specific circumstances. The primary condition under which 360 Painting may alter the protected territory is if the US Postal Service modifies any of the zip codes encompassed by the Protected Territory.
If the zip codes defining the territory change, 360 Painting can adjust the territory to reflect these changes. This modification could result in a smaller geographic area or fewer people included within the protected territory. This is a fairly standard clause in franchise agreements that rely on geographic boundaries, as postal codes are subject to change by an external authority.
It is important to note that outside of changes due to postal code modifications, 360 Painting cannot unilaterally change the Protected Territory without the franchisee's consent. This provides a level of security for the franchisee, ensuring that the territory defined in the Franchise Agreement remains stable unless both parties agree to an alteration.