What is the 360 Painting franchisee responsible for doing to ensure the noncompetition, nonsolicitation and/or nondisclosure agreements comply with applicable law?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, 360 Painting franchisees are responsible for ensuring that any products or services they use in their business operations comply with all applicable laws. This responsibility extends to verifying the legality of products and services, regardless of whether they are sourced from approved or designated suppliers.
If a 360 Painting franchisee identifies a product or service from an approved supplier that does not comply with the law, they have the option to propose an alternative product or supplier to 360 Painting. The franchisor is then obligated to review and either approve or disapprove the proposed alternative within 10 business days.
This places the onus on the franchisee to conduct due diligence and proactively address any potential legal issues related to the products and services they utilize. While 360 Painting provides a framework for suggesting alternatives, the initial responsibility for compliance rests with the franchisee.