What amount did the Plaintiffs initially agree to accept from 360 Painting in the rescission or settlement agreement?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
lly dismissed on August 27, 2018.
MMG-360 LLC, et al. v. Paul Flick, Home Service Franchising, Inc., 360 Painting LLC, Maintenance Made Simple LLC, et al. (Case No. CV-11-752725, Court of Common Pleas, Cuyahoga County, Ohio). On April 6, 2011, Plaintiff brought an action against Defendants alleging fraud in the inducement and seeking refund of Plaintiff's purchase price in a transaction in which Plaintiff entities purchased assets of Defendant entities for $140,000, which transactions were rescinded shortly after their occurrence; fraud and breach of contract based on the rescission or settlement agreement entered into between Plaintiffs and Defendants in which Plaintiffs agreed to accept $100,000 from Defendants in full repayment of the $140,000 original purchase price paid by Plaintiffs; and seeking declaratory judgment that certain ancillary agreements were canceled and terminated and that exclusive control over Plaintiff entities revert to Plaintiff Merry Meeting, Inc. Plaintiffs and Defendants filed cross motions for summary judgment. Plaintiff's summary judgment motion was granted control over Plaintiffs MMG-360, LLC; MMG-MMS, LLC; and MMG-MC, LLC was returned to Plaintiff Merry Meeting, Inc. The parties originally agreed in principal to settlement terms in July 2013 calling for Defendants 360 Painting, LLC and Flick to pay $100,000 to Plaintiffs in exchange for full general releases by all parties, but the settlement was never finalized. Defendants 360 Painting, LLC and Flick later contacted Plaintiffs in 2020 and the parties signed a formal settlement agreement dated May 26, 2020 under which Defendants paid $100,000 to Plaintiffs on June 2, 2020 in e
Source: Item 3 — LITIGATION (FDD pages 13–18)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, in the case of MMG-360 LLC, et al. v. Paul Flick, Home Service Franchising, Inc., 360 Painting LLC, Maintenance Made Simple LLC, et al., the Plaintiffs initially agreed to accept $100,000 from the Defendants. This agreement was intended as a full repayment of the original $140,000 purchase price that the Plaintiffs had paid. The lawsuit, filed on April 6, 2011, alleged fraud in the inducement and sought a refund of the purchase price. The agreement also sought declaratory judgment that certain ancillary agreements were canceled and terminated, with exclusive control over the Plaintiff entities reverting to Plaintiff Merry Meeting, Inc.
The parties initially agreed in principle to the settlement terms in July 2013, but the settlement was never finalized at that time. However, in 2020, 360 Painting and Flick contacted the Plaintiffs again, and a formal settlement agreement was signed on May 26, 2020. Under this agreement, the Defendants paid $100,000 to the Plaintiffs on June 2, 2020, in exchange for full general releases from all parties involved.
This litigation history is important for prospective franchisees to understand, as it provides insight into 360 Painting's past legal disputes and how they were resolved. Understanding the terms of previous settlements can help franchisees assess the potential risks and liabilities associated with investing in a 360 Painting franchise. It also demonstrates the company's approach to resolving disputes, which can be a factor in a franchisee's decision-making process.