What is the name of the Virginia act under which 360 Painting alleges misappropriation of trade secrets?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, 360 Painting alleges breach of the franchise agreement arising from the operation of the 360 Painting franchise through AASK Services, LLC, an entity not a party to the franchise agreement, which used 360 Painting's Marks and other business systems without authorization. 360 Painting then filed an Amended Complaint alleging breach of the franchise agreement, unjust enrichment, quantum meruit, tortious interference with contract, misappropriation of trade secrets under Virginia's Uniform Trade Secret Act, Defend Trade Secret Act violations, statutory conspiracy under VA. Code § 18.2-500 and civil conspiracy to tortiously interfere with contract.
Source: Item 3 — LITIGATION (FDD pages 13–18)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting alleges misappropriation of trade secrets under Virginia's Uniform Trade Secret Act. This allegation arose from a complaint filed on September 27, 2022, against a former franchisee, Glenn A. Misiph, and AASK Services, LLC. The initial complaint included claims of breach of contract, unjust enrichment, and unauthorized use of 360 Painting's marks.
The amended complaint expanded the allegations to include tortious interference with contract, misappropriation of trade secrets under the Virginia's Uniform Trade Secret Act, violations of the Defend Trade Secret Act, statutory conspiracy under VA. Code § 18.2-500, and civil conspiracy to tortiously interfere with contract. These claims were later agreed to be litigated in Massachusetts as part of a separate pending litigation.
For a prospective franchisee, this highlights the importance of adhering to the franchise agreement and protecting 360 Painting's trade secrets. Misappropriation of trade secrets can lead to legal action and significant financial repercussions. It also demonstrates 360 Painting's willingness to protect its brand and proprietary information through legal means.