What specific action did 360 Painting agree to cease and desist from in the Consent Order?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
In the Matter of 360 Painting, LLC f.k.a. 360 Painting, Inc., and Paul Flick, Administrative Proceeding Before the Securities Commissioner of Maryland, Case No. 2015-0477, as modified by Order Modifying Consent Order dated January 4, 2017. On or about February 23, 2016, the Securities Division of the Office of the Attorney General of the State of Maryland initiated an investigation into the franchise related activities of 360 Painting, LLC and Paul Flick. On August 18, 2016, the defendants entered into a Consent Order with the Securities Commissioner, in which they agreed, without admitting or denying any of the Commissioner's statements of fact or conclusions of law, except as to the Commissioner's jurisdiction in the proceeding, (1) to immediately and permanently cease and desist from the offer and sale of franchises in violation of the Maryland Franchise Registration and Disclosure Law
Source: Item 3 — LITIGATION (FDD pages 13–18)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, in a Consent Order dated August 18, 2016, 360 Painting agreed to immediately and permanently cease and desist from the offer and sale of franchises in violation of the Maryland Franchise Registration and Disclosure Law. This order came about due to an investigation initiated by the Securities Division of the Office of the Attorney General of the State of Maryland into 360 Painting's franchise-related activities.
Furthermore, a separate Consent Order dated October 4, 2022, indicates that 360 Painting agreed to cease and desist from any violation of RCW 19.100.170, which is part of the Franchise Investment Protection Act of Washington. This agreement was made following an investigation by the Securities Division of the Washington Department of Financial Institutions (DFI) regarding the offer and sale of franchises by Premium Service Brands, LLC and other entities, including 360 Painting.
Additionally, in a Consent Order dated November 19, 2021, 360 Painting agreed to immediately and permanently cease and desist from the offer and sale of franchises in violation of the California Franchise Investment Law. This order was a result of an informal inquiry by the Commissioner of Financial Protection and Innovation regarding alleged failures by 360 Painting to disclose certain litigation, administrative, or material civil actions in their Franchise Disclosure Documents (FDDs) and related allegations of misrepresentations and omissions in connection with 360 Painting's 2017 FDD and related sales activities in California. These actions highlight the importance of adhering to franchise laws and disclosure requirements in various states to avoid legal and financial repercussions.