Can the 360 Painting franchisor and its affiliates receive payments from suppliers?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting and its affiliates may receive payments from suppliers. These payments can be in the form of discounts or other considerations in exchange for the suppliers' dealings with 360 Painting franchisees. 360 Painting is allowed to use these received amounts without any restrictions.
This arrangement means that 360 Painting can benefit financially from the relationships it facilitates between its franchisees and suppliers. While this is a common practice in franchising, it's important for prospective franchisees to understand that 360 Painting is not obligated to share these supplier payments with the franchisees or provide an accounting of them.
Furthermore, the FDD states that 360 Painting will not be liable for any financial losses or damages resulting from delays in delivery or availability of products or services designated by 360 Painting. The franchisee is responsible for ensuring that any products or services used in their business comply with applicable laws. If a franchisee finds that a product from an approved supplier does not comply with the law, they can propose an alternative product or supplier, which 360 Painting must approve or disapprove within 10 business days.