What law governs disputes over the Marks in the 360 Painting Franchise Agreement?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Franchise Agreement | Summary you agree to mediate any dispute, controversy or claim before | |
|---|---|---|---|
| bringing suit. | |||
| v. | Choi ce of forum | Section 27.2 | Subject to applicable state law, any mediation or litigation |
| must be pursued in courts located in the county and state in | |||
| which we maintain our principal place of business (currently | |||
| the City of Charlottesville, VA). | |||
| w. | Choi ce of law | Section 27.1 | Subject to applicable state law, Virginia law applies, except |
| disputes over the Marks will be governed by the United States | |||
| Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sec. 1051 et | |||
| seq.). |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–48)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, disputes regarding the Marks (trademarks) will be governed by the United States Trademark Act of 1946, also known as the Lanham Act (15 U.S.C. Sec. 1051 et seq.). This is an exception to the general rule that Virginia law applies to disputes arising from the Franchise Agreement.
This means that any legal issues specifically related to 360 Painting's trademarks, such as infringement or misuse, will be decided based on federal trademark law rather than Virginia state law. The Lanham Act provides a comprehensive framework for trademark protection and enforcement at the federal level.
For a prospective franchisee, this is important to understand because trademark disputes can have significant implications for the business. It is crucial to adhere to 360 Painting's trademark guidelines and avoid any actions that could potentially infringe on their trademarks. Understanding that federal law governs these disputes provides clarity on the legal framework that will be applied in such cases.