Can 360 Painting modify the financial arrangements with approved vendors in the future?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
heir use of designated or approved suppliers.
As of the date of this Disclosure Document, we have approved vendor relationships for the provision of paint and painting accessories, pursuant to which we receive rebates based on sales to our franchisees (currently between 2.5% and 5% of franchisee purchases depending on the amount of franchisee purchases), as well as two vehicle lease providers from which we may receive a flat fee (ranging from $250 to $500 per vehicle depending on size and whether new or used), and lead aggregator rebates that range from a startup fee to 15%. We may modify these financial arrangements and/or have other similar financial
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, 360 Painting has the right to modify financial arrangements with its approved vendors in the future. Currently, 360 Painting has approved vendor relationships for paint and painting accessories, where they receive rebates between 2.5% and 5% of franchisee purchases, depending on the purchase amount. They also have relationships with two vehicle lease providers, potentially receiving a flat fee ranging from $250 to $500 per vehicle, based on size and whether the vehicle is new or used, and lead aggregator rebates that range from a startup fee to 15%.
This means that the financial incentives 360 Painting receives from vendors can change over time. These changes could affect the costs and benefits experienced by franchisees when using these vendors. For example, if 360 Painting negotiates a higher rebate for themselves, it might not necessarily translate to lower prices for the franchisee. Conversely, if rebates decrease, 360 Painting might seek to offset this by negotiating better pricing or other terms for franchisees.
As a prospective franchisee, it's important to understand that these financial arrangements are subject to change and are not directly controlled by the franchisee. It would be prudent to inquire with 360 Painting about the typical frequency and nature of these modifications, as well as how they might impact the overall cost of goods and services. Understanding these potential changes can help in forecasting expenses and profitability.