Does the 360 Painting FDD specify any conditions under which a franchisee can renew the agreement?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Sections 3.2(ix) and 17.4(iii) of the Franchise Agreement each contain a provision requiring a general release as a condition of renewal or transfer of the franchise. Such release will exclude claims arising under the General Business Law of New York State, Article 33, Sections 680 through 695, and the regulations issued thereunder.
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- No representation or acknowledgment by the Franchisee in the Franchise Agreement is intended to or shall act as a release, assignment, novation, waiver or estoppel which would relieve a person from any duty or liability imposed by Article 33, Sections 680 through 695, of the General Business Law of the State of New York and the regulations issued thereunder.
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- Each provision of this Amendment will be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the New York General Business Law, Article 33, are met independently without reference to this Amendment.
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- Except as otherwise provided in this Amendment, all the other terms, covenants and agreements in the Franchise Agreement shall remain the same, and the Franchise Agreement, as amended, shall continue in full force and effect. To the extent this Amendment is inconsistent with any terms or conditions of the Franchise Agreement or the Attachments to the Franchise Agreement, the terms of this Amendment shall govern.
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 amendments and addenda that address franchise agreements in specific states such as Maryland, Indiana, and New York. These amendments alter certain provisions of the standard franchise agreement to comply with state laws.
Specifically, the addendum for Indiana franchisees notes that sections of the franchise agreement relating to termination and non-renewal are only applicable to the extent they are consistent with Indiana law. Similarly, the New York addendum mentions that Section 17.4(iii) of the Franchise Agreement contains a provision requiring a general release as a condition of renewal of the franchise, but this release will exclude claims arising under the General Business Law of New York State.
These state-specific amendments suggest that the conditions for renewal can vary depending on the franchisee's location and the relevant state laws. A prospective 360 Painting franchisee should carefully review the state-specific addenda applicable to their location and consult with legal counsel to understand the full scope of their rights and obligations regarding franchise renewal.