factual

What was the outcome of the Plaintiff's summary judgment motion against 360 Painting?

360_Painting Franchise · 2025 FDD

Answer from 2025 FDD Document

lly dismissed on August 27, 2018.

MMG-360 LLC, et al. v. Paul Flick, Home Service Franchising, Inc., 360 Painting LLC, Maintenance Made Simple LLC, et al. (Case No. CV-11-752725, Court of Common Pleas, Cuyahoga County, Ohio). On April 6, 2011, Plaintiff brought an action against Defendants alleging fraud in the inducement and seeking refund of Plaintiff's purchase price in a transaction in which Plaintiff entities purchased assets of Defendant entities for $140,000, which transactions were rescinded shortly after their occurrence; fraud and breach of contract based on the rescission or settlement agreement entered into between Plaintiffs and Defendants in which Plaintiffs agreed to accept $100,000 from Defendants in full repayment of the $140,000 original purchase price paid by Plaintiffs; and seeking declaratory judgment that certain ancillary agreements were canceled and terminated and that exclusive control over Plaintiff entities revert to Plaintiff Merry Meeting, Inc. Plaintiffs and Defendants filed cross motions for summary judgment. Plaintiff's summary judgment motion was granted control over Plaintiffs MMG-360, LLC; MMG-MMS, LLC; and MMG-MC, LLC was returned to Plaintiff Merry Meeting, Inc. The parties originally agreed in principal to settlement terms in July 2013 calling for Defendants 360 Painting, LLC and Flick to pay $100,000 to Plaintiffs in exchange for full general releases by all parties, but the settlement was never finalized. Defendants 360 Painting, LLC and Flick later contacted Plaintiffs in 2020 and the parties signed a formal settlement agreement dated May 26, 2020 under which Defendants paid $100,000 to Plaintiffs on June 2, 2020 in e

Source: Item 3 — LITIGATION (FDD pages 13–18)

What This Means (2025 FDD)

According to 360 Painting's 2025 Franchise Disclosure Document, in the case of MMG-360 LLC, et al. v. Paul Flick, Home Service Franchising, Inc., 360 Painting LLC, Maintenance Made Simple LLC, et al., the Plaintiff's summary judgment motion was granted. As a result, control over Plaintiffs MMG-360, LLC; MMG-MMS, LLC; and MMG-MC, LLC was returned to Plaintiff Merry Meeting, Inc.

This case, initiated on April 6, 2011, involved allegations of fraud in the inducement, seeking a refund of $140,000 purchase price, and breach of contract related to a rescission or settlement agreement where the Plaintiffs agreed to accept $100,000 in full repayment. The lawsuit also sought a declaratory judgment regarding the cancellation of ancillary agreements and the reversion of control over Plaintiff entities to Merry Meeting, Inc.

Initially, there was an agreement in principle for 360 Painting, LLC and Flick to pay $100,000 to the Plaintiffs in exchange for full general releases in July 2013, but the settlement was not finalized at that time. However, in 2020, the parties revisited the matter, and a formal settlement agreement was signed on May 26, 2020. Subsequently, the Defendants paid $100,000 to the Plaintiffs on June 2, 2020, in exchange for full general releases, resolving the dispute.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.