Under what circumstances can delays be excused for 360 Painting franchisees and franchisor?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Moreover, Franchisee acknowledges and agrees that Franchisor will not be liable for any losses (financial or otherwise) or damages including consequential or special damages, resulting from any delay in delivery or availability of any of the products or services designated by Franchisor.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, 360 Painting acknowledges that it will not be held responsible for financial or other losses or damages, which includes consequential or special damages, that may arise if there are delays in the delivery or availability of products or services that 360 Painting designates. This means that if 360 Painting designates a specific supplier or product and there are delays, franchisees cannot hold 360 Painting liable for any resulting losses.
This clause protects 360 Painting from liability due to supply chain issues or supplier-related delays. However, it places the risk of such delays squarely on the franchisee, who may experience financial losses if they cannot obtain necessary supplies or services in a timely manner. Franchisees need to factor in potential delays when planning projects and managing customer expectations.
It is common in franchising for franchisors to specify approved suppliers to maintain quality and consistency across the brand. However, it is less common for franchisors to completely disclaim liability for delays caused by those suppliers. Prospective 360 Painting franchisees should carefully consider this provision and assess their risk tolerance for potential supply chain disruptions.