How does 360 Painting define 'Gross Sales' in the context of this financial performance representation?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
During our 2024 Fiscal year, we had 102 Franchised Businesses open and operating the entire fiscal year by the same franchisee. These 102 Franchised Businesses were operated by a total of 86 Franchisees. These 86 Franchisees and their 102 Franchised Businesses reported gross sales totaling $48,598,055 during our 2024 fiscal year in connection with their calculation and payment of Royalties. Gross Sales is defined in this analysis as it is in the Franchise Agreement.
This analysis excludes 77 Franchisees operating 89 Franchised Businesses that either (1) were not open the entire fiscal year because they either began operating or ceased operating during our 2024 fiscal year or (2) are not currently using our customer relationship manager software (CRM) in a manner for us to collect and disclose the below financial performance infor
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–48)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, 'Gross Sales' for the financial performance representation in Item 19 is defined as it is in the Franchise Agreement. During the 2024 fiscal year, 102 Franchised Businesses, operated by 86 Franchisees, reported gross sales totaling $48,598,055. This figure was used in connection with their royalty calculations and payments.
It is important to note that this analysis excludes 77 Franchisees operating 89 Franchised Businesses for two reasons: either they were not open for the entire fiscal year (started or ceased operations during 2024), or they were not using 360 Painting's customer relationship manager (CRM) software in a way that allowed the franchisor to collect and disclose the financial performance information. This exclusion highlights the importance of using the CRM software as directed by 360 Painting to ensure accurate data collection and inclusion in future performance reports.
Prospective franchisees should carefully review the Franchise Agreement to fully understand how 'Gross Sales' is defined, as this definition impacts royalty payments and is a key metric in the financial performance representations. Understanding this definition is crucial for accurately projecting potential revenue and profitability. The FDD also indicates that written substantiation of the financial performance representation will be made available to you upon reasonable request.