What was the modification made to the Consent Order for 360 Painting on January 4, 2017?

According to 360 Painting's 2025 Franchise Disclosure Document, a Consent Order was modified on January 4, 2017. The modification stipulated that 360 Painting was not required to register its franchise offering in Maryland. This exemption was conditional, applying only as long as 360 Painting refrained from making any offers or sales of franchises within Maryland or to any residents of Maryland.

This modification came after an initial Consent Order where 360 Painting agreed to cease offering and selling franchises in violation of Maryland law, file an application to register its franchise in Maryland, and offer rescission to two Maryland franchisees. The original order stemmed from the Commissioner's conclusion that 360 Painting had violated Maryland franchise laws by offering and selling franchises in the state without proper registration and by using a Franchise Disclosure Document that did not include all required information, specifically failing to disclose a lawsuit filed by Leslie Owens Brown.

The modification of the Consent Order suggests that 360 Painting addressed the issues raised by the Maryland Securities Commissioner, leading to a less restrictive agreement. However, prospective franchisees should be aware that 360 Painting has a history of regulatory scrutiny regarding franchise sales practices and disclosure requirements, as evidenced by the initial Consent Order and the subsequent modification.