How is the Warranty Service after Transfer fee calculated for a 360 Painting franchise?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Warranty Service after Transfer | Our cost, plus 15% | After transfer, upon demand | If you transfer the Business and are unable or fail to perform service on warranties you issued as a Franchisee, you must reimburse us our cost to perform the work, plus an administrative charge of 15%. |
Source: Item 6 — OTHER FEES (FDD pages 18–21)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the Warranty Service after Transfer fee is calculated as 360 Painting's cost to perform the warranty work, plus an additional 15% administrative charge. This fee is applicable if a franchisee transfers their 360 Painting business and is either unable or unwilling to fulfill the service obligations on warranties they issued prior to the transfer.
In practical terms, this means that if a former 360 Painting franchisee had outstanding warranty obligations at the time of transfer, the responsibility for fulfilling those warranties could fall to 360 Painting. The franchisee would then be required to reimburse 360 Painting for the actual costs incurred in performing the warranty service, along with a 15% surcharge to cover administrative expenses.
This policy protects customers who have existing warranties and ensures that they will be honored even after a franchise changes ownership. For a prospective 360 Painting franchisee, it highlights the importance of fulfilling all warranty obligations before considering a transfer of ownership. Failure to do so could result in unexpected costs and liabilities after the business has been sold. Franchisees should keep detailed records of all warranties issued and the associated service requirements to avoid potential disputes or financial burdens related to warranty claims after a transfer.