factual

In the event of a dispute with 360 Painting, am I required to mediate before bringing a lawsuit?

360_Painting Franchise · 2025 FDD

Answer from 2025 FDD Document

aul Flick Title: CEO | Name: Title: | [Signature Page to Amendment to 360 Painting, LLC Franchise Agreement for the State of Virginia]

WASHINGTON ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT, THE FRANCHISE AGREEMENT, AND ALL RELATED AGREEMENTS

The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington;(b)thepurchaser ofthe franchise is a resident ofWashington; and/or(c)the franchised business thatisthe subject ofthe sale isto be located or operated,wholly or partly,inWashington.

    1. Conflict of Laws. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
    1. Franchisee Bill of Rights. RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise. There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor. Franchise agreement provisions, including those summarized in Item17 oftheFranchiseDisclosureDocument, are subject tostate law.
    1. Site of Arbitration, Mediation, and/or Litigation. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchiseemaybringanactionorproceedingarisingoutoforinconnectionwith thesaleof franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
    1. General Release. A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement afterthe agreement isin effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2). In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
    1. Statute of Limitations and Waiver of Jury Trial. Provisions contained in the franchise agreement or related agreements that unreasonably restrict or limit the statute of limitations period for claimsundertheWashingtonFranchise InvestmentProtectionAct,or rights orremediesundertheActsuch as a rightto a jury trial,may not be enforceable.
    1. Transfer Fees. Transferfeesare collectableonlyto the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
    1. Termination by Franchisee. The franchisee may terminate the franchise agreement under any grounds permitted understate law.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)

What This Means (2025 FDD)

The 2025 Franchise Disclosure Document for 360 Painting includes state-specific addenda that address dispute resolution. For instance, the Washington addendum states that the site of any mediation involving a franchise purchased in Washington will be either in Washington, a mutually agreed-upon location, or as determined by the mediator. It also indicates that franchisees may bring actions or proceedings arising from the sale of franchises or violations of the Washington Franchise Investment Protection Act in Washington if litigation is not precluded by the franchise agreement.

For franchisees in Minnesota, the addendum notes that the Minnesota Franchise Act prohibits 360 Painting from requiring litigation to be conducted outside of Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties, or judgment notes. Additionally, the Minnesota addendum specifies that nothing in the disclosure document reduces any rights provided under Minnesota Statute Sec. 80C or rights to any procedure, forum, or remedies provided by the laws of the jurisdiction. The addendum also states that a franchisee cannot consent to 360 Painting obtaining injunctive relief, although 360 Painting may seek such relief, with a court determining if a bond is required.

For Indiana franchisees, the addendum specifies that the franchise agreement will be governed by Indiana law, allowing franchisees to litigate in Indiana without being restricted to suing only in Albemarle, Virginia. These state-specific provisions highlight the importance of reviewing the addendum applicable to your state to understand your rights and obligations regarding dispute resolution with 360 Painting.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.