According to 360 Painting's 2025 Franchise Disclosure Document, the location where litigation must take place depends on the franchisee's state and the specifics of the franchise agreement. Generally, litigation must be pursued in courts located in the county and state in which 360 Painting maintains its principal place of business, which is currently the City of Charlottesville, Virginia. However, this is subject to applicable state law, meaning that certain states have laws that supersede this clause.

For instance, the addendum for Washington states that if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington. Similarly, for Indiana franchisees, the FDD states that they have the right to litigate in Indiana and are not restricted to suing only in Albemarle, Virginia.

For prospective franchisees, this means that the standard franchise agreement may require litigation to occur in Virginia, which could be a significant burden for franchisees located far from Virginia. However, state-specific addenda may provide alternative venues for litigation, so it is crucial to review these addenda carefully to understand your rights based on the state in which the franchise is purchased and operated. Franchisees should consult with legal counsel to fully understand the implications of these clauses and how they apply to their specific circumstances.