For 360 Painting franchisees in Maryland, under what condition are initial fees and payments deferred?

According to the 2025 360 Painting Franchise Disclosure Document, initial fees and payments owed by franchisees in Maryland are deferred under a specific condition. The Maryland Securities Commissioner requires a financial assurance based on 360 Painting's financial condition. As a result, all initial fees and payments are deferred until 360 Painting completes its pre-opening obligations as outlined in the franchise agreement.

This deferral is a protective measure for franchisees in Maryland, ensuring that 360 Painting fulfills its initial responsibilities before the franchisee is required to pay the initial fees. Pre-opening obligations typically include site selection assistance, training, and providing necessary manuals and resources. This condition provides a level of financial security for new franchisees, reducing the risk of paying fees upfront without receiving the promised support and services.

Prospective 360 Painting franchisees in Maryland should carefully review the franchise agreement to understand the full scope of 360 Painting's pre-opening obligations. They should also confirm with 360 Painting that the deferral policy is still in effect and understand the process for when and how the initial fees will become due after the pre-opening obligations are met. This ensures clarity and avoids potential misunderstandings regarding payment schedules.