If the 360 Painting franchisor designates itself as a supplier, what right does it have?

According to 360 Painting's 2025 Franchise Disclosure Document, if the franchisor designates itself as a supplier, it has the right to earn a profit on any items it supplies to franchisees. This means that 360 Painting can profit from selling products and services to its franchisees, in addition to the franchise fees and royalties it collects.

This arrangement is common in franchising, as it allows the franchisor to maintain quality control and consistency across the brand. However, it also means that franchisees may be required to purchase supplies from the franchisor, even if they could find them cheaper elsewhere. Franchisees are generally allowed to purchase from other sources if the franchisor does not designate an exclusive supplier, so long as the products meet 360 Painting's standards.

It is important for prospective 360 Painting franchisees to consider this when evaluating the franchise opportunity. They should carefully review the list of required suppliers and compare the prices of those suppliers to other available options. Franchisees should also inquire about the franchisor's criteria for approving new suppliers, in case they wish to source products from alternative vendors. While 360 Painting is not required to share any discounts or payments it receives from other suppliers, the franchisee is responsible for ensuring any products or services they use in their business comply with applicable law.