What did 360 Painting receive in exchange for the $100,000 payment to the Plaintiffs?
360_Painting Franchise · 2025 FDDAnswer 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a transaction in which Plaintiff entities purchased assets of Defendant entities for $140,000, which transactions were rescinded shortly after their occurrence; fraud and breach of contract based on the rescission or settlement agreement entered into between Plaintiffs and Defendants in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 the 2025 FDD, 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., 360 Painting paid $100,000 to the Plaintiffs on June 2, 2020. In exchange for this payment, 360 Painting received full general releases from all parties involved in the lawsuit.
The original lawsuit, filed on April 6, 2011, alleged fraud in the inducement and sought a refund of $140,000, which was the purchase price the Plaintiffs paid for assets of the Defendant entities. The Plaintiffs also alleged fraud and breach of contract based on a rescission or settlement agreement. They sought a declaratory judgment that certain ancillary agreements were canceled and that exclusive control over the Plaintiff entities would revert to Plaintiff Merry Meeting, Inc.
The settlement agreement, finalized on May 26, 2020, resolved these claims. In addition to the general releases, control over Plaintiffs MMG-360, LLC; MMG-MMS, LLC; and MMG-MC, LLC was returned to Plaintiff Merry Meeting, Inc. This indicates that the payment of $100,000 was intended to fully resolve all outstanding issues and disputes between the parties, providing 360 Painting with legal closure and protection from further claims related to the original transaction.