Does the 360 Painting FDD specify any conditions under which a franchisee can transfer the agreement?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
elevant time. References to a governmental agency also refer to any regulatory body that succeeds the function of such agency.
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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.
FRANCHISOR: 360 PAINTING, LLC FRANCHISEE: [Name of Entity or Individual] By: By: Name: Paul Flick Title: CEO Name: Title: [Signature Page to Amendment to 360 Painting, LLC Franchise Agreement for the State of New York]
ADDENDUM TO 360 PAINTING, LLC FRANCHISE DISCLOSURE DOCUMENT FOR VIRGINIA FRANCHISEES
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for 360 Painting, LLC for use in the Commonwealth of Virginia shall be amended as follows:
Item 5, Additional Disclosures. The following statement is added to Item 5:
The Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owed by franchisees to the franchisor until the franchisor has completed its pre-opening obligations under the franchise agreement.
Item 17, Additional Disclosure. The following statements are added to Item 17.g. and Item 17.h.
Section 13.1-564 of the Virginia Retail Franchising Act makes it unlawful for a franchisor to cancel a franchise agreement without reasonable cause. If any ground for default or termination stated in the franchise agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
AMENDMENT TO 360 PAINTING, LLC FRANCHISE AGREEMENT FOR THE STATE OF VIRGINIA
| ("Franchisee" or "you") and 360 Painting, LLC ("Franchisor"), dated | (the "Franchise Agreement") shall be amended by the addition of the following language, which should be |
|---|---|
| considered an integral part of the Franchise Agreement (the "Amendment"). | |
| Virginia Law Modification | |
| IN RECOGNITION OF THE REQUIREMENTS THE PARTIES TO THE FRANCHISE AGREEMENT | OF THE VIRGINIA RETAIL FRANCHISING ACT, AGREE AS FOLLOWS: |
| 1. | Section 4.1 and Exhibit C-1 of the Franchise Agreement are amended and supplemented as follows: |
| agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
The 2025 360 Painting FDD includes several state-specific addenda that modify the standard franchise agreement regarding transfer conditions. For instance, the addendum for New York franchisees notes that the general release typically required for franchise transfer will exclude claims arising under the General Business Law of New York State, Article 33, Sections 680 through 695. Similarly, no franchisee representation can waive rights or protections under the Indiana Deceptive Franchise Practices Law when transferring a franchise in Indiana. These stipulations ensure that franchisees in these states retain their legal rights during the transfer process.
For franchisees in Illinois, the FDD states that Illinois law governs the agreements and voids any provision designating jurisdiction or venue outside of Illinois, although arbitration outside the state is permitted. Additionally, any condition that binds a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This ensures that Illinois franchisees cannot unknowingly relinquish their legal protections during a transfer.
These state-specific modifications highlight the importance of carefully reviewing the addenda applicable to your state. Prospective 360 Painting franchisees should consult with a franchise attorney to fully understand how these conditions affect their rights and obligations when considering a franchise transfer. The FDD emphasizes that it summarizes the franchise agreement and other information, urging potential franchisees to read all documents carefully.