If 360 Painting, LLC fails to fulfill its obligations to franchisees, who guarantees those obligations?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, Premium Service Brands, LLC, a Delaware limited liability corporation located at 126 Garrett Street, Suite J, Charlottesville, VA 22902 (the "Guarantor"), absolutely and unconditionally guarantees to assume the duties and obligations of 360 Painting, LLC, a limited liability corporation located at 126 Garrett Street, Suite J, Charlottesville, VA 22902 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
The Guarantor executes this guarantee in Charlottesville, VA on the 28th day of April, 2025.
Guarantor:
Premium Service Brands, LLC
By:
Name: Paul Flick
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Premium Service Brands, LLC guarantees the obligations of 360 Painting, LLC under its franchise registration in each state where the franchise is registered and under its Franchise Agreement. This guarantee means that Premium Service Brands, LLC is committed to ensuring that 360 Painting fulfills its duties to its franchisees.
The guarantee remains in effect until all obligations of 360 Painting under its franchise registrations and the Franchise Agreement are satisfied or until the liability of 360 Painting to its franchisees under the Franchise Agreement has been completely discharged, whichever occurs first. This indicates a long-term commitment from Premium Service Brands, LLC to support the franchisees of 360 Painting.
It is important to note that Premium Service Brands, LLC is not discharged from liability if a claim by a franchisee against 360 Painting remains outstanding. However, Premium Service Brands, LLC does not waive receipt of notice of default on the part of 360 Painting. This guarantee is binding on Premium Service Brands, LLC and its successors and assigns, ensuring continued protection for franchisees even if the guarantor's ownership or structure changes.