Is a 360 Painting franchisee still liable to Internet Companies for obligations incurred before the transfer of Internet Web Sites and Listings?

According to 360 Painting's 2025 Franchise Disclosure Document, a franchisee remains liable to Internet Companies for obligations incurred before the transfer of Internet Web Sites and Listings. Specifically, even after the transfer of all interest in Internet Web Sites and Listings to 360 Painting, the franchisee is still responsible for payments they owe to these Internet Companies. This liability extends to sums the franchisee was obligated to pay before the date 360 Painting accepted the transfer of interest. It also covers any other obligations not subject to the Franchise Agreement or the Internet Listing Agreement.

This means that if a 360 Painting franchisee has outstanding bills or contractual obligations with Internet Companies (such as for website hosting, domain registration, or advertising services) at the time of the franchise termination and transfer of web assets, they will still be responsible for settling those debts. This is the case even though 360 Painting may now control the web assets. The franchisee's liability is limited to obligations incurred before the transfer date and those not covered by the franchise or internet listing agreements.

For a prospective 360 Painting franchisee, this highlights the importance of maintaining good financial standing with all Internet Companies used for the business. Before terminating the franchise or transferring any web assets, a franchisee should ensure all accounts are settled to avoid future liabilities. This clause protects the Internet Companies and ensures they are paid for services rendered, regardless of the franchise's status. It also clarifies the financial responsibilities of the franchisee during and after the termination process.