Does the 360 Painting franchise agreement require the franchisee to use only approved vehicles?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise required by Franchisor, or if Franchisor designates an exclusive designated supplier, Franchisee may purchase any and all products, supplies, Vehicles, equipment and tools from any available source, so long as such products, supplies, Vehicles, equipment and tools conform to the standards and specifications established by Franchisor.
If Franchisor designates itself as a supplier, Franchisor has the right to earn a profit on any items it supplies.
Franchisor and its affiliates may receive payments, discounts or other consideration from suppliers in consideration of such suppliers' dealings with Franchisee and/or the system of 360 Painting franchisees, and may use all amounts received by it without restriction.
Franchisor is not required to give Franchisee an accounting of supplier payments or to share the benefit of supplier payments with Franchisee or other 360 Painting franchisees.
Moreover, Franchisee acknowledges and agrees that Franchisor will not be liable for any losses (financial or otherwise) or damages including consequential or special damages, resulting from any delay in delivery or availability of any of the products or services designated by Franchisor.
Franchisee is responsible for verifying and ensuring the any products or services it uses in the operation of the Business comply with applicable law.
In the event that Franchisee determines that any product of an approved or designated supplier does not comply with applicable law, Franchisee may propose an alternate product or supplier in writing and Franchisor shall approve or disapprove such alternate product or supplier within 10 business days.
- 9.11 Trade Dress. Prominently display on the Vehicles or on any real property owned or leased by Franchisee in connection with the Business the name "360 Painting" using signs, decals or paint patterns, of such nature, form, color, number, location and size, and containing such material as Franchisor may from time to time reasonably direct or approve in writing; and not display on the Vehicles or in the Business or elsewhere any sign, decal or advertising media of any kind to which Franchisor reasonably objects.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, the 360 Painting franchise agreement does not necessarily require franchisees to use only approved vehicles. Unless 360 Painting requires otherwise or designates an exclusive supplier, franchisees can purchase vehicles from any source, provided they meet the standards and specifications set by 360 Painting.
360 Painting has the right to designate approved suppliers, including themselves or affiliates, whose products or services meet their standards. If 360 Painting designates itself as a supplier, it can profit from those supplies. They can also receive payments or discounts from suppliers for doing business with 360 Painting franchisees, without having to share those benefits with the franchisees.
Franchisees are responsible for ensuring that any products or services they use comply with the law. If a franchisee finds that an approved supplier's product doesn't comply with the law, they can propose an alternative, which 360 Painting must approve or disapprove within 10 business days. Franchisees must prominently display the 360 Painting name on their vehicles using signs, decals, or paint patterns as directed or approved by 360 Painting.