Upon termination of the 360 Painting Franchise Agreement, what is the franchisee obligated to do with their telephone numbers and listings if directed by the franchisor?

According to the 2025 FDD, upon demand by 360 Painting, a franchisee must assign all rights, title, and interest in their telephone numbers, telephone directory listings and advertisements, website URLs, e-mail addresses, vendor contracts, vendor accounts, store leases, and governmental licenses or permits used for the business operation to 360 Painting or its designee. To ensure compliance, franchisees must also execute an Internet Web Sites and Listings Agreement and a Telephone Listing Agreement when signing the Franchise Agreement.

Furthermore, the Telephone Listing Agreement grants 360 Painting the power to direct telephone companies to transfer or terminate the franchisee's interest in telephone numbers and listings. The telephone companies can accept 360 Painting's written statement as conclusive proof of the Franchise Agreement's termination. After the transfer of telephone numbers and listings, the franchisee will have no further interest in or obligations under such listings, although they remain liable for any outstanding payments to the telephone companies incurred before the transfer.

This agreement survives the termination of the Franchise Agreement, meaning these obligations continue even after the franchise relationship ends. However, 360 Painting has no duty to exercise these powers, and the franchisee agrees to perform any acts and deliver any documents necessary to assist in accomplishing the purposes of the Telephone Listing Agreement. This arrangement protects 360 Painting's interests and ensures a smooth transition of business assets upon termination, while also clarifying the franchisee's responsibilities and potential liabilities.