Who bears the expenses, including attorneys' fees, in any litigation involving 360 Painting?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent the California Franchise Investment Law, Cal. Corp. Code §§ 31000-31516 or the California Franchise Relations Act, Cal. Bus. & Prof. Code §§20000-20043 applies, the terms of this Addendum apply.
THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE FRANCHISE DISCLOSURE DOCUMENT 14 DAYS PRIOR TO EXECUTION OF AGREEMENT.
OUR WEBSITE AT www.360painting.com HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENT OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT www.dfpi.ca.gov.
SECTION 31125 OF THE CALIFORNIA CORPORATIONS CODE REQUIRES US TO GIVE YOU A DISCLOSURE DOCUMENT, IN A FORM CONTAINING THE INFORMATION THAT THE COMMISSIONER MAY BY RULE OR ORDER REQUIRE, BEFORE A SOLICITATION OF A PROPOSED MATERIAL MODIFICATION OF AN EXISTING FRANCHISE.
Item 3, Additional Disclosure:
Neither we nor any person identified in Item 2 is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S. C.A. 78a et seq., suspending or expelling such persons from Franchise in such association or exchange.
Item 6, Additional Disclosure:
The highest interest rate allowed by California is 10% annually.
Item 17, Additional Disclosures:
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the allocation of expenses, including attorneys' fees, in litigation involving 360 Painting is not explicitly detailed. However, the document includes addenda for specific states like California, Illinois, Indiana, Maryland, and Washington, which address legal considerations and modifications to the standard franchise agreement. These state-specific addenda primarily focus on governing laws, venue for litigation, and franchisee rights, particularly concerning waivers, jury trials, and non-compete clauses. For example, the Indiana addendum specifies that Indiana law governs agreements with Indiana franchisees and that these franchisees have the right to litigate in Indiana. Similarly, the Illinois addendum states that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration outside of Illinois is permitted. The Washington addendum notes that the Washington Franchise Investment Protection Act may supersede provisions in the franchise agreement. These addenda suggest that litigation-related terms can vary significantly depending on the franchisee's location.
Given the absence of a universal clause addressing litigation expenses, prospective 360 Painting franchisees should carefully review the state-specific addendum applicable to their location to understand any relevant modifications to the franchise agreement. These modifications could impact where litigation can occur and what laws govern the agreement. Furthermore, the FDD includes a receipt acknowledging that franchisees receive a list of state administrators and agents for service of process, which may be relevant in the event of legal action. The document also mentions that failure to deliver the disclosure document on time or if it contains false or misleading statements may constitute a violation of federal and state law.
To fully understand who bears the expenses, including attorneys' fees, in any litigation involving 360 Painting, a prospective franchisee should consult with a franchise attorney. The attorney can help interpret the franchise agreement in light of applicable state laws and advise on potential risks and liabilities. Additionally, the prospective franchisee should directly ask 360 Painting about their policy on covering litigation costs and seek clarification on any clauses in the franchise agreement that could affect their financial obligations in case of a dispute. Understanding these details is crucial for making an informed investment decision and preparing for potential legal challenges.