On what date did 360 Painting enter into the Assurance of Voluntary Compliance (AVC)?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Illinois franchisees were harmed. On May 22, 2020, 360 Painting entered into an Assurance of Voluntary Compliance ("AVC"), under which 360 Painting agreed to offer affected franchisees the opportunity to rescind their franchise agreements, make a $6,000 payment to the state, disclose the AVC in its disclosure document, and comply with the Illinois Franc
Source: Item 3 — LITIGATION (FDD pages 13–18)
What This Means (2025 FDD)
According to the 2025 FDD, on May 22, 2020, 360 Painting entered into an Assurance of Voluntary Compliance (AVC) with the Illinois Attorney General's Office. This agreement followed an investigation into potential violations of the Illinois Franchise Disclosure Act. The investigation was related to 360 Painting's failure to obtain signed Illinois amendments to the franchise agreement for Illinois franchises between April 2017 and December 2019.
Under the terms of the AVC, 360 Painting agreed to several actions. These included offering affected franchisees the opportunity to rescind their franchise agreements, making a $6,000 payment to the state of Illinois, disclosing the AVC in its Franchise Disclosure Document, and ensuring future compliance with the Illinois Franchise Disclosure Act.
This AVC indicates that 360 Painting has faced regulatory scrutiny regarding its franchise practices. Prospective franchisees should carefully review Item 3 of the FDD, which covers litigation, and consider the implications of past regulatory actions. It would be prudent to inquire with 360 Painting about the specific steps they have taken to prevent similar issues from recurring and to ensure full compliance with franchise laws in all states.