What is the title of the Act that may govern the 360 Painting Franchise Agreement?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for 360 Painting, LLC for use in the Commonwealth of Virginia shall be amended as follows:
Item 5, Additional Disclosures. The following statement is added to Item 5:
The Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owed by franchisees to the franchisor until the franchisor has completed its pre-opening obligations under the franchise agreement.
Item 17, Additional Disclosure. The following statements are added to Item 17.g. and Item 17.h.
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- Sections 3.2(ix) and 17.4(iii) of the Franchise Agreement each contain a provision requiring a general release as a condition of renewal or transfer of the franchise. Such release will exclude claims arising under the General Business Law of New York State, Article 33, Sections 680 through 695, and the regulations issued thereunder.
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- No representation or acknowledgment by the Franchisee in the Franchise Agreement is intended to or shall act as a release, assignment, novation, waiver or estoppel which would relieve a person from any duty or liability imposed by Article 33, Sections 680 through 695, of the General Business Law of the State of New York and the regulations issued thereunder.
You may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
In recognition of the requirements of the Indiana Deceptive Franchise Practices Law, Indiana Code §§ 23- 2-2.7-1 through 23-2-2.7-10, and the Indiana Franchise Disclosure Law, Indiana Code §§ 23-2-2-2.5-1 through 23-2-2-2.5-51, the parties to the Franchise Agreement agree as follows:
To the extent the California Franchise Investment Law, Cal. Corp. Code §§ 31000-31516 or the California Franchise Relations Act, Cal. Bus. & Prof. Code §§20000-20043 applies, the terms of this Addendum apply.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, several acts may govern the 360 Painting Franchise Agreement, depending on the franchisee's location. For franchisees in Virginia, the Virginia Retail Franchising Act may apply. For franchisees in New York, the General Business Law of New York State, Article 33, Sections 680 through 695, may apply. For franchisees in Maryland, the Maryland Franchise Registration and Disclosure Law may apply. For franchisees in Indiana, the Indiana Deceptive Franchise Practices Law, Indiana Code §§ 23- 2-2.7-1 through 23-2-2.7-10, and the Indiana Franchise Disclosure Law, Indiana Code §§ 23-2-2-2.5-1 through 23-2-2-2.5-51, may apply. Finally, for franchisees in California, the California Franchise Investment Law, Cal. Corp. Code §§ 31000-31516 or the California Franchise Relations Act, Cal. Bus. & Prof. Code §§20000-20043 may apply.
These laws can impact various aspects of the franchise relationship, including disclosures required by the franchisor, conditions for termination or renewal, and dispute resolution processes. For example, the Virginia Retail Franchising Act requires the franchisor to defer payment of initial franchise fees until pre-opening obligations are met. Similarly, the Maryland Franchise Registration and Disclosure Law provides certain protections and rights to franchisees, including the right to bring lawsuits in Maryland for claims arising under the law.
It is important for prospective 360 Painting franchisees to understand which state-specific laws govern their franchise agreement, as these laws can provide important rights and protections. Franchisees should carefully review the relevant addenda to the Franchise Disclosure Document and consult with an attorney to ensure they fully understand their rights and obligations under applicable state laws.