Are there any purchasing or distribution cooperatives currently available to 360 Painting franchisees?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
There are currently no purchasing or distribution cooperatives. We have negotiated distribution and supply arrangements, commissions, and group rates for purchases of certain inventory and supplies necessary for the operation of the Business. The terms of these arrangements may vary, but may include preferential
pricing or purchasing terms for franchisees, contributions to the Marketing Fund, franchisee training and educational programs provided by the vendor, rebates paid to us and/or payments to us to support our annual convention or other franchisee meetings. Rebates and other financial considerations from vendors may be flat payments or based on the aggregate amount of franchisee purchases.
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, there are currently no purchasing or distribution cooperatives available to franchisees. However, 360 Painting has negotiated distribution and supply arrangements, commissions, and group rates for certain inventory and supplies needed to operate the business. These arrangements may offer preferential pricing or purchasing terms for franchisees. They may also include contributions to the Marketing Fund, franchisee training and educational programs provided by the vendor, rebates paid to 360 Painting, and/or payments to 360 Painting to support their annual convention or other franchisee meetings. These rebates and financial considerations can be flat payments or based on the total amount of franchisee purchases.
360 Painting and its affiliates may receive revenues or other material consideration as a result of required franchisee purchases or leases. 360 Painting can use any payments, discounts, or other amounts received from suppliers, lessors, or other parties without restriction and is not required to provide franchisees with an accounting of these benefits or share them. These amounts may be kept by 360 Painting as compensation for locating and negotiating with suppliers for the System. The FDD states that 360 Painting does not provide material benefits to franchisees based on their use of designated or approved suppliers.
While franchisees do not directly benefit from purchasing cooperatives, 360 Painting's negotiated arrangements could lead to cost savings or other advantages. However, franchisees should be aware that 360 Painting benefits financially from these arrangements and is not obligated to share those benefits. Prospective franchisees should inquire about the specific terms of these negotiated arrangements and how they might impact their costs and profitability.