F82/100FDD 2025
360 Painting — Litigation & Risk
Home Services - Painting · FDD Items 3, 4 & 5
Elevated Risk
15 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
15
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
82 / 100
FranchiseVerdict composite
Rating
AVOID
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
104
Government-backed loans issued
Default rate
40.0%
vs <3% typical · system-wide
5-yr default rate
50.0%
Defaults
14 loans
Loans charged off or defaulted
Total loan volume
$16.9M
Avg loan size
$163K
Participating lenders
19
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Virginia
State whose law governs disputes — relevant if you're not based there
What drove the 82/100 rating
Risk Score Breakdown
- 01MINORDeclining unit count (-4.4% YoY) indicates system contraction and potential franchisee dissatisfaction
- 02HIGHMultiple litigation cases with former franchisees (Misiph, Belegu, DeGregorio, Carreno) suggest contract/relationship breakdown patterns
- 03MINORRegulatory consent orders in 5 states (Maryland, Illinois, Virginia, California, Washington) for disclosure and registration violations indicate compliance failures and franchisor credibility issues
- 04MINORNo Item 19 (average net income) disclosure prevents validation of $132,350-$196,000 investment ROI claims
- 05MINORVendor disputes (Dispatch Technologies, yellowpages.com, MMG-360) suggest operational/payment reliability concerns
- 06MINORHigh royalty floor ($150/week minimum = $7,800/year) creates fixed cost pressure regardless of revenue performance
- 07HIGHGoing Concern status = False raises questions about franchisor financial stability and long-term support
Severity inferred from FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.