What is the definition of 'Franchise Fee' in the 360 Painting FDD?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
EM 5: INITIAL FEES**
Franchise Fee
The initial franchise fee ("Franchise Fee") for a 360 Painting Business is $65,000. The Franchise Fee is payable by wire transfer and generally must be paid in one lump-sum upon execution of the Franchise Agreement. If you obtain third-party SBA financing, the terms of that financing may require that you pay a portion of the Franchise Fee (typically $15,000) upon execution of the Franchise Agreement and the remainder (typically $50,000) be paid after receiving funding. The Franchise Fee is fully earned when paid and is not refundable.
Discount Offered
We offer two different discount options on the Franchise Fee. The discounts may not be combined.
First, we offer a 10% discount on the Franchise Fee for honorably discharged U.S. military veterans and individuals working in rescue, emergency services and policing who purchase a new Franchised Business.
Second, we offer a 10% discount on the Franchise Fee if you already own and operate an existing franchise in a franchise system owned by us or one of our affiliates and you are in compliance with the terms of your franchise agreement.
During our last fiscal year, we sold franchises for a Franchise Fee that ranged from $0 to $65,000.
Source: Item 5 — INITIAL FEES (FDD page 18)
What This Means (2025 FDD)
According to the 2025 360 Painting FDD, the initial franchise fee, referred to as the "Franchise Fee", for a 360 Painting business is $65,000. This fee is generally payable in one lump-sum via wire transfer upon the execution of the Franchise Agreement. However, if a franchisee obtains third-party SBA financing, the terms may allow for a split payment, typically $15,000 upon signing the agreement and the remaining $50,000 after funding is received.
The 360 Painting franchise offers discounts on the Franchise Fee under certain conditions. Honorably discharged U.S. military veterans and individuals working in rescue, emergency services, and policing are eligible for a 10% discount on the Franchise Fee when purchasing a new franchise. A similar 10% discount is available to those who already own and operate an existing franchise within a franchise system owned by 360 Painting or its affiliates, provided they are in compliance with their current franchise agreement.
The Franchise Fee is considered fully earned by 360 Painting once paid and is non-refundable. The FDD also notes that during the last fiscal year, the Franchise Fees for franchises sold ranged from $0 to $65,000, indicating that the franchisor may offer other discounts or incentives beyond those listed. This information is important for prospective franchisees to understand the initial investment required and the potential for discounts based on their individual circumstances.