What is the late charge for failing to submit a timely Gross Sales statement to 360 Painting?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
he taxes are added to the selling price of Franchisee's goods and services and are in fact paid by Franchisee to the appropriate governmental authorities; or (iii) the value of any coupons duly issued and approved by Franchisor, or any bona fide discounts or customer refunds approved by Franchisor. For purposes of reporting Gross Sales, all revenues must be recorded upon receipt and any approved refunds to customers shall be deducted from revenues when the refund is tendered.
- 4.5 Estimated Gross Sales If Franchisee Does Not Report. If Franchisee fails to submit to Franchisor, by 12:00 p.m. Eastern Time on Tuesday of each week, a statement of Gross Sales for the prior week ending on Saturday (the "Business Week") as required by Section 6.3(i), then Franchisee will be assessed a $100 late charge per statement, per week, or part thereof, until each delinquent statement has been subm
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, franchisees must submit a statement of Gross Sales each week by Tuesday at 12:00 p.m. Eastern Time. This statement covers the prior week ending on Saturday. If a franchisee fails to submit the statement on time, 360 Painting will assess a $100 late charge per statement, per week, or part of a week, until the delinquent statement is submitted.
This late charge can add up quickly if a franchisee consistently misses the deadline. It is important for prospective franchisees to understand the importance of timely reporting and to have systems in place to ensure compliance. The franchisor may grant reasonable extensions of time to submit a statement of Gross Sales.
In addition to the late charge, 360 Painting has the right to estimate the franchisee's Gross Sales if a statement is not submitted on time. This estimate will be based on any information 360 Painting possesses that it believes allows it to approximate the actual amount of Gross Sales achieved by the franchisee for the period. This estimate will be used to calculate and collect payments due to 360 Painting.