When was the formal settlement agreement signed between the Plaintiffs and 360 Painting?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
lly dismissed on August 27, 2018.
MMG-360 LLC, et al. v. Paul Flick, Home Service Franchising, Inc., 360 Painting LLC, Maintenance Made Simple LLC, et al. (Case No. CV-11-752725, Court of Common Pleas, Cuyahoga County, Ohio). On April 6, 2011, Plaintiff brought an action against Defendants alleging fraud in the inducement and seeking refund of Plaintiff's purchase price in a transaction in which Plaintiff entities purchased assets of Defendant entities for $140,000, which transactions were rescinded shortly after their occurrence; fraud and breach of contract based on the rescission or settlement agreement entered into between Plaintiffs and Defendants in which Plaintiffs agreed to accept $100,000 from Defendants in full repayment of the $140,000 original purchase price paid by Plaintiffs; and seeking declaratory judgment that certain ancillary agreements were canceled and terminated and that exclusive control over Plaintiff entities revert to Plaintiff Merry Meeting, Inc. Plaintiffs and Defendants filed cross motions for summary judgment. Plaintiff's summary judgment motion was granted control over Plaintiffs MMG-360, LLC; MMG-MMS, LLC; and MMG-MC, LLC was returned to Plaintiff Merry Meeting, Inc. The parties originally agreed in principal to settlement terms in July 2013 calling for Defendants 360 Painting, LLC and Flick to pay $100,000 to Plaintiffs in exchange for full general releases by all parties, but the settlement was never finalized. Defendants 360 Painting, LLC and Flick later contacted Plaintiffs in 2020 and the parties signed a formal settlement agreement dated May 26, 2020 under which Defendants paid $100,000 to Plaintiffs on June 2, 2020 in e
Source: Item 3 — LITIGATION (FDD pages 13–18)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, a formal settlement agreement in the case of MMG-360 LLC, et al. v. Paul Flick, Home Service Franchising, Inc., 360 Painting LLC, Maintenance Made Simple LLC, et al. was signed on May 26, 2020. In this agreement, 360 Painting, LLC and Flick agreed to pay $100,000 to the Plaintiffs on June 2, 2020, in exchange for full general releases from all parties involved.
This settlement resolves allegations initially brought by the Plaintiffs on April 6, 2011, which included claims of fraud in the inducement related to a $140,000 asset purchase, breach of contract, and disputes over control of Plaintiff entities. The initial agreement in principle was reached in July 2013, but it was never finalized at that time.
The fact that a settlement was reached several years after the initial dispute highlights the potential for protracted legal battles and the associated costs. For a prospective franchisee, this underscores the importance of understanding the potential legal liabilities and the franchisor's approach to resolving disputes. It also demonstrates 360 Painting's willingness to settle legal matters to avoid further litigation, which could be a positive sign for franchisees seeking a stable and predictable business relationship.