Can 360 Painting estimate a franchisee's Gross Sales if they fail to report it?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
he taxes are added to the selling price of Franchisee's goods and services and are in fact paid by Franchisee to the appropriate governmental authorities; or (iii) the value of any coupons duly issued and approved by Franchisor, or any bona fide discounts or customer refunds approved by Franchisor. For purposes of reporting Gross Sales, all revenues must be recorded upon receipt and any approved refunds to customers shall be deducted from revenues when the refund is tendered.
- 4.5 Estimated Gross Sales If Franchisee Does Not Report. If Franchisee fails to submit to Franchisor, by 12:00 p.m. Eastern Time on Tuesday of each week, a statement of Gross Sales for the prior week ending on Saturday (the "Business Week") as required by Section 6.3(i), then Franchisee will be assessed a $100 late charge per statement, per week, or part thereof, until each delinquent statement has been subm
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, if a franchisee fails to submit their weekly Gross Sales statement by the required time, 360 Painting has the right to estimate those sales for the purpose of calculating payments due under Sections 4 and 5 of the agreement. The weekly statement must be submitted by 12:00 p.m. Eastern Time on Tuesday for the prior week ending on Saturday. If the franchisee is late submitting the statement, they will be assessed a $100 late charge per statement, per week, or part thereof, until the statement is submitted.
360 Painting will base its estimate on any information in its possession that it believes allows it to approximate the franchisee's actual Gross Sales for the period in question. This could include past sales data, market trends, or other relevant information.
It is important for prospective 360 Painting franchisees to understand that consistently failing to report Gross Sales on time can result in both late fees and estimated sales figures, which may not accurately reflect their actual revenue. However, 360 Painting will not withhold its consent for reasonable extensions of time to submit a statement of Gross Sales.