factual

After termination of the Franchise Agreement, is 360 Painting permitted to release a former franchisee's operational data to other franchisees and prospective franchisees?

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 the 2025 FDD, 360 Painting has the right to access and disclose a franchisee's operational data both during and after the term of the Franchise Agreement. During the agreement, 360 Painting can share data relating to the franchisee's business operations with other franchisees for benchmarking, performance recognition, or preparing financial performance representations for prospective franchisees.

Specifically, after the termination of the Franchise Agreement, 360 Painting retains the right to release a former franchisee's operational information to both current franchisees and prospective franchisees. This includes data collected from the computer hardware and software programs used in the 360 Painting business, such as bookkeeping, customer service, scheduling, and marketing data.

However, 360 Painting states that it will not disclose to any third party any specific financial or other information directly associated with the franchisee or the business unless authorized by the franchisee. This suggests that while operational data may be shared, specific financial details tied directly to the franchisee's identity will be protected unless consent is given. This practice allows 360 Painting to maintain transparency and facilitate performance improvements within the franchise system while also protecting sensitive franchisee-specific information.

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.