Does the 360 Painting FDD specify any conditions under which a franchisee can terminate the agreement?

Based on the 2025 360 Painting Franchise Disclosure Document addenda for Maryland franchisees, the franchisor's right to terminate the Franchise Agreement due to the franchisee's bankruptcy may not be enforceable under federal law. This suggests that standard termination clauses related to bankruptcy might be superseded by federal regulations, offering some protection to franchisees facing financial difficulties.

The 360 Painting FDD also includes addenda for Indiana franchisees, stating that the sections in the Franchise Agreement relating to termination are applicable only to the extent they are consistent with or not prohibited by Indiana law. Indiana law will control if there is any inconsistency or prohibition. This indicates that Indiana franchisees have additional protections under Indiana law that may affect the standard termination provisions in the franchise agreement.

For franchisees in New York, the 360 Painting FDD specifies that no representation or acknowledgment by the franchisee in the Franchise Agreement shall act as a release, assignment, waiver, or estoppel that would relieve a person from any duty or liability imposed by the General Business Law of New York. This provision ensures that New York franchisees retain their rights and protections under state law, regardless of any conflicting terms in the franchise agreement.