Where must any litigation be pursued for 360 Painting?
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 Trad |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 FDD, the standard 360 Painting franchise agreement mandates that, subject to applicable state laws, any mediation or litigation must occur in courts located in the county and state where 360 Painting maintains its principal place of business, which is currently Charlottesville, Virginia. This requirement is outlined in Section 27.2 of the franchise agreement. However, this is subject to applicable state laws, meaning that certain states may have addenda that supersede this clause.
For instance, the addendum for Indiana franchisees specifically states that they have the right to litigate in Indiana, regardless of the franchise agreement's requirement to sue only in Albemarle, Virginia. Similarly, Minnesota law prohibits 360 Painting from requiring litigation to be conducted outside of Minnesota. Maryland also allows franchisees to bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Therefore, while the standard agreement specifies Virginia as the venue for disputes, prospective 360 Painting franchisees need to carefully review any state-specific addenda to understand their rights regarding the location of litigation. These addenda can significantly alter the terms of the franchise agreement, particularly concerning legal recourse and where lawsuits can be filed. Franchisees should consult with a legal professional to fully understand the implications of these clauses and addenda in their specific state.