What was the settlement amount that 360 Painting paid in the case against The DeGregorio, LLC?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
ber 31, 2023
None
Prior Actions
360 Painting, LLC v. The DeGregorio, LLC, et al., (U.S. N.D. Ill., East. Div., Case # 1:21-cv-04577). Filing date: August 27, 2021. 360 Painting, LLC filed a Complaint against former franchisee Greg DeGregorio and several associated corporate entities based on Breach of Franchisee Agreement, Breach of Personal Guaranty, and Fraud/Negligent Misrepresentation based on former franchisee's royalty reporting. The parties entered into a settlement of all claims, with neither party admitting fault or liability, on December 24, 2021, pursuant to which 360 Painting paid $21,000. An agreed dismissal order requesting a dismissal of all claims with prejudice was entered
Source: Item 3 — LITIGATION (FDD pages 13–18)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting, LLC entered into a settlement with The DeGregorio, LLC on December 24, 2021, to resolve claims related to breach of franchisee agreement, breach of personal guaranty, and fraud/negligent misrepresentation based on the former franchisee's royalty reporting. As part of this settlement, 360 Painting paid $21,000 to The DeGregorio, LLC. The settlement was reached without either party admitting fault or liability.
This information is relevant for prospective franchisees as it provides insight into the types of disputes that 360 Painting has been involved in with its franchisees. Specifically, it highlights a case where 360 Painting pursued legal action against a franchisee for issues related to royalty reporting and the subsequent settlement.
It is important to note that the settlement does not indicate any wrongdoing on the part of either party. However, it does demonstrate the potential for financial settlements in disputes between 360 Painting and its franchisees. A prospective franchisee should consider this information and further investigate the nature of franchisee relations and potential dispute resolution processes within the 360 Painting franchise system.