For 360 Painting franchisees in Minnesota, when are initial fees and payments due to the franchisor?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Items 5 and 7, Additional Disclosures:
All initial fees and payments due to us before you open your Business are deferred until we complete our pre-opening obligations to you and you open your Business.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, Minnesota franchisees have a specific addendum that addresses the timing of initial fees and payments. Unlike some franchise agreements that require upfront payments, 360 Painting defers these payments for Minnesota franchisees. This means that all initial fees and payments that would typically be due before the business opens are postponed.
Specifically, these fees and payments are not due until 360 Painting has completed all of its pre-opening obligations to the franchisee. This includes providing training, site selection assistance, and other support outlined in the franchise agreement. Furthermore, the payments are deferred until the franchisee actually opens their 360 Painting business.
This deferral of initial fees and payments offers a significant benefit to prospective 360 Painting franchisees in Minnesota. It reduces the upfront financial burden and aligns the payment schedule with the progress of setting up the business. This arrangement can be particularly helpful for franchisees who may need more time to secure financing or manage their cash flow during the initial stages of launching their 360 Painting franchise.