What is the purpose of the Franchise Compliance Questionnaire that 360 Painting requires?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
As you know, 360 Painting, LLC and you are preparing to enter into a Franchise Agreement for the operation of a Business. In this Questionnaire, 360 Painting, LLC, will be referred to as "we" or "us." The purpose of this Questionnaire is to determine whether any statements or promises were made to you that we did not authorize and that may be untrue, inaccurate or misleading. Please review each of the following questions carefully and provide honest and complete responses to each question.
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
All representations requiring prospective franchisees to assent to a release, estoppels or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Illinois Franchise Disclosure Act.
Source: Item 23 — RECEIPTS (FDD pages 56–210)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, the purpose of the Franchise Compliance Questionnaire is to determine whether any unauthorized, untrue, inaccurate, or misleading statements or promises were made to the prospective franchisee during the franchise sales process. 360 Painting uses this questionnaire to verify that the information provided to the franchisee aligns with what the company has authorized and disclosed in its official documents.
The questionnaire covers several key areas, including the franchisee's understanding of the scope of the franchise territory, the non-compete covenants, and the roles of 360 Painting's representatives. It also addresses whether any claims or representations were made regarding sales, income, profit levels, costs, likelihood of success, advertising, marketing, training, support, service, or assistance that contradict or differ from the information in the Disclosure Document. The questionnaire also asks if the franchisee has ever been convicted of a felony, crime, or other offense that may affect their ability to be a successful business owner or which may reflect poorly on the Brand.
It is important to note that the questionnaire does not act as a waiver of any claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by 360 Painting or its representatives. This means that even if a franchisee signs the questionnaire, they still retain their legal rights and protections under franchise laws. The FDD specifies that the questionnaire is not to be signed if the prospective franchisee is a resident of Maryland or the business is to be operated in Maryland.
By using this questionnaire, 360 Painting aims to ensure transparency and compliance in its franchise sales process, while also protecting itself from potential legal issues arising from unauthorized representations made by its employees or agents. Prospective franchisees should carefully review and honestly answer each question in the questionnaire to ensure they have a clear and accurate understanding of the franchise opportunity.