What law governs disputes over the 360 Painting Marks?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
gnature Page to Amendment to 360 Painting, LLC Franchise Agreement for the State of Illinois]**
ADDENDUM TO 360 PAINTING, LLC FRANCHISE DISCLOSURE DOCUMENT FOR INDIANA FRANCHISEES
The Indiana Deceptive Franchise Practices Law (Indiana Code 23-2-2.7) contains certain laws governing the relationship between a Franchisor and Franchisee. Certain of these laws conflict with provisions contained in our customary Franchise Agreement and related documents. Set forth below is an overview of certain disclosures contained in the attached Franchise Disclosure Document which are amended by virtue of the Indiana law.
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- The Franchise Agreement and related documents by and between us and you, as an Indiana franchisee, will be governed by Indiana law and not the law of the Commonwealth of Virginia.
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- You, as an Indiana franchisee, have the right to litigate in Indiana and are not restricted to the requirements in the Franchise Agreement to sue only in Albemarle Virginia.
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- The covenants of non-competition with respect to you, as an Indiana franchisee, will be limited to an area equal to the protected area granted to you and other Franchisees.
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for 360 Painting includes state-specific addenda that address governing law in certain states. For instance, the addendum for Indiana franchisees states that the franchise agreement will be governed by Indiana law, not the law of the Commonwealth of Virginia. Similarly, franchisees in Maryland may bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. These addenda modify the standard franchise agreement to comply with local franchise laws.
For prospective franchisees, this means that the governing law for disputes may vary depending on the state in which the franchise is located. The standard franchise agreement might specify Virginia law, but the state-specific addenda could override this provision. This is particularly relevant for issues such as termination, non-renewal, venue for litigation, modification, and covenants not to compete, where state laws may provide different protections or limitations.
It is important for potential 360 Painting franchisees to carefully review the state-specific addenda applicable to their location to understand which laws will govern their franchise agreement. This ensures that franchisees are aware of their rights and obligations under local laws, which may differ significantly from the standard terms of the franchise agreement. Franchisees should consult with legal counsel to fully understand the implications of these state-specific provisions.
While the FDD includes addenda for several states like Indiana, Maryland, California, Minnesota, and Virginia, it does not explicitly state which law governs disputes over 360 Painting's Marks in every state. Therefore, prospective franchisees should consult with the franchisor to clarify which jurisdiction's laws would apply to disputes about the 360 Painting Marks in their specific state.