What time of day on Tuesday must 360 Painting franchisees pay their Continuing Fees?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
5. PAYMENTS OF FEES; LATE PAYMENT
- 5.1 Payment of Fees. Franchisee shall pay to Franchisor, by 12:00 p.m. Eastern Time on Tuesday of each week, the Royalties, Contact Center Fees, recurring Technology Fees, Marketing Fund Contributions, Advertising Cooperative contributions, Proposal/Estimating Software Fees, Accounting and Business Advisory Services Fees and any other continuing fees (collectively, the "Continuing Fees") due to the Franchisor under this Agreement with respect to the prior week. Continuing Fees are nonrefundable. If the date for any payment hereunder falls on a day on which commercial banks are authorized or required by law to close in the state where Franchisor maintains its principal place of business, such payment shall be made on the next day during which such commercial banks are open for business. Franchisor has the right to change the payment due date or change the frequency of payment so long as Franchisor provides Franchisee at least sixty (60) days advance notice of such changes.
- 5.2 Automated Bank Draft. Franchisee understands and agrees that all Continuing Fees must be paid by automated bank draft or other reasonable means necessary to ensure payment of such fees are received by Franchisor or the appropriate Advertising Cooperative, as Franchisor determines appropriate from time to time. Franchisee must execute the "ACH Authorization" which is attached to this Agreement as Exhibit C-8. Franchisee agrees to comply with Franchisor's payment instructions and to execute such other documents as Franchisor may request from time to time to provide Franchisee's unconditional and irrevocable authority and direction to its bank authorizing and directing Franchisee's bank to pay and deposit directly to the account designated by Franchisor all Continuing Fees due hereunder. Every week, Franchisee shall make deposits to the account sufficient to cover amounts owed to Franchisor for the preceding week just ended. Franchisee shall execute any documents Franchisor's or Franchisee's bank requires to establish and implement the automated bank draft system. Once such a system is established, Franchisee shall not close the account from which automated bank drafts are being withdrawn without Franchisor's written consent.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, franchisees are required to pay their Continuing Fees by 12:00 p.m. Eastern Time every Tuesday. These Continuing Fees encompass Royalties, Contact Center Fees, recurring Technology Fees, Marketing Fund Contributions, Advertising Cooperative contributions, Proposal/Estimating Software Fees, and Accounting and Business Advisory Services Fees. The fees apply to the prior week's activities. These Continuing Fees are nonrefundable.
If a payment due date falls on a day when commercial banks are closed in the state where 360 Painting has its principal place of business, the payment is due on the next business day. However, 360 Painting retains the right to modify the payment due date or the frequency of payments, provided they give franchisees at least sixty days' advance notice of such changes.
All Continuing Fees must be paid via automated bank draft or another method to ensure timely receipt by 360 Painting or the relevant Advertising Cooperative. Franchisees must complete an ACH Authorization form to authorize these automated payments. Franchisees are responsible for maintaining sufficient funds in their account to cover the amounts owed to 360 Painting each week. Franchisees cannot close the account used for automated bank drafts without 360 Painting's written consent.