factual

What specific year's FDD of 360 Painting was mentioned in connection with alleged misrepresentations and omissions?

360_Painting Franchise · 2025 FDD

Answer from 2025 FDD Document

nt Order dated November 19, 2021. In early 2021, the Commissioner of Financial Protection and Innovation ("Commissioner") opened an informal inquiry regarding alleged failures by defendants to disclose certain litigation, administrative, or material civil actions involving defendants in their Franchise Disclosure Documents ("FDD's") as well as related allegations of misrepresentations and omissions in connection with defendant 360 Painting, LLC's 2017 FDD and related sales activities in California. Defendants contested the Commissioner's allegations, but on November 19, 2021, the defendants elected to enter into a Consent Order with the Commissioner, in which they agreed, without admitting or denying any of the Commissioner's statements of fact or conclusions of law, (1) to immediately and permanently cease and desist from the offer and sale of franchises in violation of the California Franchise Investment Law; (2) to pay penalties of $72,500 and costs of $10,500 to the Commissioner; (3) to disgorge all initial franchise fees paid by California franchisees to defendant 360 Painting, LLC and refrain from enforcing or collecting judgments against California franchisees; (4) to disclose to the Commissioner pending and concluded governmental agency matters, pending and concluded administrative, criminal and civil actions against defendants and bankruptcies and debt discharges filed by defendants; (5) to a stop order related to the effectiveness of defendant's 2021 California applications; and (5) to a bar order against defendant Paul Flick from offering or selling franchises or filing franchise registra

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

What This Means (2025 FDD)

According to the 2025 360 Painting Franchise Disclosure Document, the 2017 FDD is specifically mentioned in connection with allegations of misrepresentations and omissions. This is in reference to an administrative proceeding before the Department of Financial Protection and Innovation of the State of California. The allegations also extend to related sales activities in California.

The consent order that resulted from these allegations required 360 Painting to take several actions, including ceasing the offer and sale of franchises in California, paying penalties and costs, disgorging initial franchise fees to California franchisees, and disclosing governmental agency matters. Paul Flick, was also barred from offering or selling franchises or filing franchise registrations in California for 36 months.

This indicates that prospective franchisees should carefully review the litigation history of 360 Painting, paying close attention to any past issues related to FDD disclosures and compliance with franchise laws, especially in states like California. It also highlights the importance of understanding the regulatory environment in the states where they plan to operate their franchise.

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.