Besides 360 Painting, what other entities were involved in the matter with the Commissioner of Financial Protection and Innovation?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
to violate the Act in the future.
In The Matter of the Commissioner of Financial Protection and Innovation v. 360 Painting, LLC, Pro-Lift Doors Franchise, LLC, Maid Right, LLC, Handyman Pro, LLC, Kitchen Wise, LLC, Renew Crew, LLC, Rubbish Works, LLC, and Paul Flick, an individual, Administrative Proceeding Before the Department of Financial Protection and Innovation of the State of California, File Origination ID 33649, 26267, 110487, 293487, 292987, 339827, 99696, 365318, 403947, Consent Order dated November 19, 2021. In early 2021, the Commissioner of Financial Protection and Innovation ("Commissioner") opened an informal inquiry regarding alleged failures by defendants to disclose certain litigation, administrative, or material civil actions involving defendants in their Franchise Disclosure Documents ("FDD's") as well as related allegations of misrepresentations and omissions in connection with defendant 360 Painting, LLC's 2017 FDD and related sales activities in California. Defendants contested the Commissioner's allegations, but on November 19, 2021, the defendants elected to enter into a Consent Order with the Commissioner, in which they agreed, without admitting or denying any of the Commissioner's statements of fact or conclusions of law, (1) to immediately and permanently cease and desist from the offer and sale of franchises in violation of the California Franchise Investment Law; (2) to pay penalties of $72,500 and costs of $10,500 to the Commissioner; (3) to disgorge all initial franchise fees paid by California franchisees to defendant 360 Painting, LLC and refrain from enforcing or collecting judgments against California franchisees; (4) to disclose to the Commissioner pending and concluded governmental agency matters, pending and concluded administrative, criminal and civil actions against defendants and bankruptcies and debt discharges filed by defendants; (5) to a stop order related to the effectiveness of defendant's 2021 California applications; and (5) to a bar order against defendant Paul Flick from offering or selling franchises or filing franchise registra
Source: Item 3 — LITIGATION (FDD pages 13–18)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, in a matter with the Commissioner of Financial Protection and Innovation, several other entities were involved. Specifically, Pro-Lift Doors Franchise, LLC, Maid Right, LLC, Handyman Pro, LLC, Kitchen Wise, LLC, Renew Crew, LLC, Rubbish Works, LLC, and Paul Flick, an individual, were all named as parties in the administrative proceeding. This proceeding was before the Department of Financial Protection and Innovation of the State of California.
The consent order, dated November 19, 2021, indicates that the Commissioner opened an inquiry regarding alleged failures to disclose certain litigation, administrative, or material civil actions in the Franchise Disclosure Documents (FDDs). The allegations also included misrepresentations and omissions related to 360 Painting's 2017 FDD and associated sales activities in California. While the defendants contested the allegations, they ultimately entered into the consent order without admitting or denying the Commissioner's statements.
Under the terms of the consent order, the entities agreed to several actions. These included ceasing the offer and sale of franchises in violation of the California Franchise Investment Law, paying penalties and costs totaling $83,000 to the Commissioner, disgorging initial franchise fees paid by California franchisees to 360 Painting, and refraining from enforcing or collecting judgments against these franchisees. Additionally, they were required to disclose pending and concluded governmental agency matters, administrative, criminal, and civil actions, and bankruptcies. The order also included a stop order related to the effectiveness of the defendant's 2021 California applications and a bar order against Paul Flick from offering or selling franchises or filing franchise registrations in California for 36 months. This matter serves as an example of the legal and regulatory scrutiny that franchise systems can face and the potential consequences of non-compliance with franchise laws.