Can a 360 Painting franchisee disclaim reliance on statements made by the franchisor or its representatives in connection with the franchise commencement?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
LLC FRANCHISE DISCLOSURE DOCUMENT FOR FRANCHISEES IN FRANCHISE REGISTRATION STATES**
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
ADDENDUM TO 360 PAINTING, LLC FRANCHISE DISCLOSURE DOCUMENT FOR CALIFORNIA FRANCHISEES
To the extent the California Franchise Investment Law, Cal. Corp. Code §§ 31000-31516 or the California Franchise Relations Act, Cal. Bus. & Prof. Code §§20000-20043 applies, the terms of this Addendum apply.
THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE FRANCHISE DISCLOSURE DOCUMENT 14 DAYS PRIOR TO EXECUTION OF AGREEMENT.
OUR WEBSITE AT www.360painting.com HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENT OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT www.dfpi.ca.gov.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, in certain states, a franchisee cannot waive claims or disclaim reliance on statements made by the franchisor or its representatives. Specifically, the addendum states that no statement, questionnaire, or acknowledgment signed by a franchisee related to starting the franchise can waive claims under state franchise law, including fraud in the inducement. It also prevents disclaiming reliance on statements made by 360 Painting, its sellers, or representatives. This protection supersedes any conflicting terms in other franchise documents.
This provision is particularly relevant for prospective franchisees in franchise registration states. It ensures that franchisees retain their legal rights and recourse against 360 Painting, even if they have signed documents that appear to limit those rights. This addendum aims to protect franchisees from potentially misleading or fraudulent statements made during the franchise sales process.
For instance, the 360 Painting FDD includes an addendum applicable to franchisees in Maryland. This addendum reinforces the protection, stating explicitly that no statement, questionnaire, or acknowledgment can waive claims or disclaim reliance on statements made by the franchisor. This ensures that Maryland franchisees retain their rights under the Maryland Franchise Registration and Disclosure Law.
Similarly, the 360 Painting FDD includes an addendum applicable to franchisees in Indiana. This addendum states that Indiana law prohibits a prospective general release of claims subject to the Indiana Deceptive Franchise Practices Law. This means that 360 Painting franchisees in Indiana cannot waive their rights under this law.