Does 360 Painting share any payments, discounts, or other amounts received from suppliers with franchisees?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates will derive revenues or other material consideration as a result of required purchases or leases by franchisees. We may use any payments, discounts, or other amounts received from suppliers, lessors, or other parties in connection with those arrangements without restriction. We are not required to give you any accounting of those payments, discounts or other amounts or share the benefit of them with you. Any such amounts may be kept by us as compensation for locating and negotiating with suppliers for the System. We do not provide material benefits to franchisees based on their use of designated or approved suppliers.
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 is not required to share any payments, discounts, or other amounts received from suppliers with its franchisees. 360 Painting states that it may use any payments, discounts, or other amounts received from suppliers, lessors, or other parties in connection with those arrangements without restriction.
360 Painting indicates that it is not required to give franchisees any accounting of those payments, discounts, or other amounts or share the benefit of them. 360 Painting states that any such amounts may be kept by them as compensation for locating and negotiating with suppliers for the System.
This arrangement is fairly common in franchising. Franchisors often negotiate discounts and rebates with suppliers based on the collective buying power of the franchise system. These arrangements can benefit franchisees through lower prices or other incentives, but the franchisor is not always obligated to pass along the full benefit. Prospective 360 Painting franchisees should consider this when evaluating the overall cost and potential profitability of the franchise.