For what purposes may 360 Painting collect and disclose data relating to a franchisee's operation of the business to other 360 Painting franchisees operating in the system?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 FDD, 360 Painting may collect and disclose data relating to a franchisee's business operations to other franchisees within the system for specific purposes. This includes using the data for benchmarking, which allows franchisees to compare their performance against others in the system and identify areas for improvement. Additionally, 360 Painting may use the data for performance recognition, potentially highlighting successful franchisees and their strategies.
Another key reason 360 Painting collects and shares this data is for preparing financial performance representations for prospective franchisees. This information can provide potential new franchisees with insights into the financial potential of a 360 Painting franchise, based on the actual performance of existing locations. After the termination of a Franchise Agreement, 360 Painting retains the right to release such information to other franchisees and prospective franchisees.
It's important to note that 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. While 360 Painting assures that they will not disclose specific financial or other information directly associated with the franchisee or their business to any third party without authorization, franchisees should be aware of the extent of data access granted to 360 Painting and how it may be used within the franchise system.