Is the royalty fee paid by a 360 Painting franchisee refundable?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not, for any reason, withhold payment of any Royalty Fees or other amounts due to Franchisor or to any of its affiliates. Franchisee shall not withhold or offset any amounts, damages or other monies allegedly due to Franchisee against any amounts due to Franchisor. No endorsement or statement on any payment for less than the full amount due to Franchisor will be construed as an acknowledgment of payment in full, or an accord and satisfaction, and Franchisor has the right to accept and cash any such payment without prejudice to Franchisor's right to recover the full amount due, or pursue any other remedy provided in this Agreement or by law. Franchisor has the right to apply any payments made by Franchisee against any of Franchisee's past due indebtedness as Franchisor deems appropriate. Franchisor shall set off sums Franchisor owes to Franchisee against any unpaid debts owed by Franchisee to Franchisor.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the 360 Painting franchise agreement stipulates that franchisees are not allowed to withhold payments of royalty fees or any other amounts owed to 360 Painting or its affiliates. Franchisees are prohibited from offsetting any alleged damages or monies against the amounts due to 360 Painting.
Furthermore, any endorsement or statement on a payment for less than the full amount due will not be considered as full payment or an agreement of satisfaction. 360 Painting retains the right to accept and cash such payments without relinquishing its right to recover the full amount due or pursue any other legal remedy.
360 Painting also has the right to apply any payments made by the franchisee to any past due debts as it deems appropriate and can offset sums it owes to the franchisee against any unpaid debts owed by the franchisee to 360 Painting. The FDD does not state that royalty fees are refundable under any circumstances.