When is the Warranty Service after Transfer fee due 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 the 2025 360 Painting Franchise Disclosure Document, the Warranty Service after Transfer fee is due "after transfer, upon demand." This fee is incurred if a franchisee transfers their 360 Painting business and is unable or fails to perform service on warranties they issued as a franchisee.
The fee is calculated as 360 Painting's cost to perform the warranty work, plus an additional administrative charge of 15%. This means that if a former franchisee is unable to fulfill their warranty obligations, the new franchisee or 360 Painting itself will step in to complete the work, and the former franchisee will be responsible for covering the expenses.
This policy protects customers who have warranties from a 360 Painting franchise, ensuring that those warranties are honored even after the business changes ownership. For a prospective franchisee, this highlights the importance of fulfilling all warranty obligations before considering a transfer of ownership. Failing to do so could result in unexpected costs and liabilities after the transfer is complete.