What is 360 Painting's primary performance obligation under the franchise agreements?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, Premium Service Brands, LLC ("Guarantor"), a limited liability company organized under the laws of the State of Delaware and located at 126 Garrett Street, Suite J, Charlottesville, VA 22902, absolutely and unconditionally guarantees to assume the duties and obligations of 360 Painting, LLC, located at 126 Garrett Street, Suite J, Charlottesville, VA 22902 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and on its successors and assigns.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Premium Service Brands, LLC, as the Guarantor, absolutely and unconditionally guarantees to assume the duties and obligations of 360 Painting, LLC under its franchise registration in each state where the franchise is registered. This also applies to the Franchise Agreement identified in the 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified, or extended from time to time.
This guarantee remains in effect until all obligations of 360 Painting under its franchise registrations and the Franchise Agreement are satisfied, or until the liability of 360 Painting to its franchisees under the Franchise Agreement has been completely discharged, whichever occurs first. The guarantor, Premium Service Brands, LLC, is not discharged from liability if a claim by a franchisee against 360 Painting remains outstanding.
Essentially, Premium Service Brands, LLC is ensuring that 360 Painting fulfills its commitments to franchisees. This provides a level of security for franchisees, knowing that a larger entity stands behind 360 Painting's obligations. However, it is important to note that while notice of acceptance of the guarantee is waived, the Guarantor does not waive receipt of notice of default on the part of 360 Painting.