What is the minimum amount for the Warranty Assurance fee for a 360 Painting franchise?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Warranty Assurance | $10,000 | On termination or expiration | To ensure that any customer warranties you issued during the term are honored, you must post a bond in an amount equal to 0.5% of your Gross Sales for the 24 months before termination or expiration or (if the amount of the bond would be less than $10,000) pay us $10,000. |
Source: Item 6 — OTHER FEES (FDD pages 18–21)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the Warranty Assurance fee has a minimum amount of $10,000. This fee is due upon termination or expiration of the franchise agreement.
The purpose of the Warranty Assurance is to ensure that any customer warranties issued by the franchisee during the term of the agreement are honored. To meet this obligation, a franchisee must either post a bond equal to 0.5% of their gross sales for the 24 months before termination or expiration, or pay 360 Painting $10,000 if 0.5% of gross sales is less than $10,000.
In practical terms, this means that a 360 Painting franchisee needs to be prepared to pay at least $10,000 when the franchise agreement ends. The actual amount could be higher depending on their gross sales in the two years leading up to the termination or expiration date. This fee is designed to protect customers and maintain the integrity of the 360 Painting brand, but it represents a potentially significant cost for franchisees at the end of their term.