factual

Is 360 Painting permitted to use a franchisee's financial and operational data to create a financial performance representation?

360_Painting Franchise · 2025 FDD

Answer from 2025 FDD Document

Any System computer hardware and software programs and databases (including, but not limited to, email accounts and platforms) that we require to be used in your Business or that we permit you to use in your Business, must provide us continuous and independent remote access, at your expense, to all of the information stored in or compiled by such computer hardware and software programs and databases. Currently, this includes bookkeeping, customer service, scheduling, and marketing data, but we may expand our collection of data to include any other data which we believe will enable us to more effectively or efficiently manage the System or promote System services. We will not disclose to any third party any specific financial or other information directly associated with you or the Business unless authorized by you. But, we may use your financial and operational data to create a financial performance representation, and we may disclose information to our employees, attorneys, accountants, consultants, agents and others retained or employed by us who have a need to know the information in order to facilitate the administration of the relationship between you and us, or to comply with applicable law, court orders or accounting rules. During the term of the Franchise Agreement, we will have independent access to, and we may collect and disclose to other franchisees operating in the System data relating to your operation of the Business for the purpose of benchmarking or performance recognition, or for preparing financial performance representations for prospective franchisees. After termination of the Franchise Agreement, we may release such information to other franchisees and prospective franchisees.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–38)

What This Means (2025 FDD)

According to 360 Painting's 2025 Franchise Disclosure Document, 360 Painting is permitted to use a franchisee's financial and operational data to create a financial performance representation. 360 Painting gains continuous and independent remote access to all information stored in or compiled by the franchisee's computer hardware, software programs, and databases. This includes bookkeeping, customer service, scheduling, and marketing data. 360 Painting may expand its collection of data to include any other data which it believes will enable it to more effectively or efficiently manage the System or promote System services.

While 360 Painting will not disclose specific financial or other information directly associated with the franchisee or the business to any third party unless authorized by the franchisee, it may use the franchisee's financial and operational data to create a financial performance representation. 360 Painting may also disclose information to its employees, attorneys, accountants, consultants, agents, and others retained or employed by it who have a need to know the information in order to facilitate the administration of the relationship between the franchisee and 360 Painting, or to comply with applicable law, court orders, or accounting rules.

During the term of the Franchise Agreement, 360 Painting will have independent access to, and may collect and disclose to other franchisees operating in the System, data relating to the franchisee's operation of the business for the purpose of benchmarking or performance recognition, or for preparing financial performance representations for prospective franchisees. After termination of the Franchise Agreement, 360 Painting may release such information to other franchisees and prospective franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.