Under what condition was 360 Painting not required to register its franchise offering in Maryland?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
In an Order Modifying Consent Order dated January 4, 2017, the Consent Order was modified so that 360 Painting was not required to register its 360 Painting franchise offering in Maryland as long as no offers or sales of 360 Painting franchises were made in Maryland or to any Maryland residents.
Source: Item 3 — LITIGATION (FDD pages 13–18)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting was initially required to register its franchise offering in Maryland but later was not required to do so under specific conditions. In 2016, the Securities Division of the Office of the Attorney General of the State of Maryland investigated 360 Painting's franchise activities, leading to a Consent Order.
The Consent Order initially mandated that 360 Painting cease offering and selling franchises in Maryland, file an application to register its franchise, and offer rescission to two Maryland franchisees. However, this order was modified on January 4, 2017.
The modification stipulated that 360 Painting was not required to register its franchise in Maryland as long as no offers or sales of 360 Painting franchises were made within Maryland or to any Maryland residents. This means that 360 Painting could avoid registration in Maryland by completely abstaining from franchise activities in the state.