FDD Items 3 & 4 · 2024 filing

Purvelo litigation history

What Purvelo disclosed about lawsuits, arbitrations and bankruptcy in the 2024 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.

Items 3 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed: 8; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: None stated

Bankruptcy (Item 4): None; Franchisor, parent, predecessor or officer

Filing year: 2024; Disclosures cover the prior ten years

Extracted from the 2024 Franchise Disclosure Document

Item 3: litigation

Purvelo Franchising, LLC has no direct litigation. Three cases involve affiliate PSB Group: (1) Dispatch Technologies v. Premium Service Brands - CRM vendor breach of contract settled May 20, 2019 for $190,000; (2) MMG-360 LLC v. Paul Flick et al. - asset purchase dispute settled May 26, 2020 for $100,000; (3) Maryland Securities Commissioner action against 360 Painting/Paul Flick for unregistered franchise sales and deficient FDD (Item 3 litigation disclosure omission), resolved via Consent Order August 18, 2016 with modification January 4, 2017.

Item 3 (litigation) · 8 matters disclosed

Litigation cases

Parent, affiliates, master franchisor and subfranchisor

Concluded (8)

In the Matter of 360 Painting, LLC, and Paul Flick
concluded
Government or regulatory action · 360 Painting, LLC (affiliate) and Paul Flick · filed 2022 · Securities Commissioner of Maryland · 2022-0226
“… Administrative Proceeding Before the Securities Commissioner of Maryland, Case No. 2022-0226.”Page 16 of the 2024 FDD, Item 3
Outcome: “the sum of $50,000.00 as a civil monetary penalty; and (3) that the Consent Order is a disclosable order as described under the Maryland Franchise Law, and Item 3 of the NASAA Franchise Registration and Disclosure Guidelines and Amended FTC Franchise Rule.”
In the matter of determining whether there has been a violation of the Franchise Investment Protection Act of Washington by: 360 Painting, LLC and In the matter of determining whether there has been a violation of the Franchise Investment Protection Act of Washington by: Pro-Lift Doors Franchise, LL
concluded
Government or regulatory action · 360 Painting, LLC and Pro-Lift Doors Franchise, LLC (affiliates) · filed 2022-10-04 · State of Washington Department of Financial Institutions, Securities Division · S-22-3399-22-CO01
“In the matter of determining whether there has been a violation of the Franchise Investment Protection Act of Washington by: 360 Painting, LLC and In the matter of determining whether there has been a violation of the Franchise Investment Protection Act of”Page 16 of the 2024 FDD, Item 3
Outcome: “to pay investigative costs of $2,000. In the Matter of 360 Painting, LLC, and Paul Flick, Administrative Proceeding Before the Securities Commissioner of Maryland, Case No. 2022-0226.”
In The Matter of the Commissioner of Financial Protection and Innovation v. 360 Painting, LLC, Pro-Lift Doors Franchise, LLC, Maid Right, LLC, Handyman Pro, LLC, Kitchen Wise, LLC, Renew Crew, LLC, Rubbish Works, LLC, and Paul Flick
concluded
Government or regulatory action · 360 Painting, LLC and other PSB brand franchisors (affiliates); Paul Flick · filed 2021-11-19 · California Department of Financial Protection and Innovation · File Origination ID 33649, 26267, 110487, 293487, 292987, 339827, 99696, 365318, 403947
“In The Matter of the Commissioner of Financial Protection and Innovation v. 360 Painting, LLC, Pro-Lift Doors Franchise, LLC, Maid Right, LLC, Handyman Pro, LLC, Kitchen Wise, LLC, Renew Crew, LLC, Rubbish Works, LLC, and Paul Flick, an individual,”Page 16 of the 2024 FDD, Item 3
Outcome: “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;”
Commonwealth of Virginia, ex. rel. State Corporation Commission v. 360 Painting, LLC
settled
Government or regulatory action · 360 Painting, LLC (affiliate) · filed 2020 · Virginia State Corporation Commission · SEC-2020-00055
“… No. SEC-2020-00055, investigation by the Virginia State Corporation Commission.”Page 15 of the 2024 FDD, Item 3
Outcome: “360 Painting agreed to pay $10,000 in monetary penalties, $1,000 to defray costs of investigation, and agreed not to violate the Act in the future.” (page 16)
In the Matter of 360 Painting, LLC
concluded
Government or regulatory action · 360 Painting, LLC (affiliate) · filed 2020 · Illinois Attorney General · 20-AVC-F001
“… No. 20-AVC-F001, investigation by Illinois Attorney General’s Office. In January 2020, the Illinois Attorney General’s Office began an investigation of potential violations of the Illinois Franchise Disclosure Act by 360”Page 15 of the 2024 FDD, Item 3
Outcome: “make a $6,000 payment to the state, disclose the AVC in its disclosure document, and comply with the Illinois Franchise Disclosure Act in the future.”
Dispatch Technologies, Inc. v. Premium Service Brands, LLC
settled
Brought by a third party · Premium Service Brands, LLC (PSB, affiliate) · filed 2019-03-29 · Superior Court, Suffolk County, Trial Court of Massachusetts · 1984CV01003
“… (case #1984CV01003, The Superior Court, Suffolk County, Trial Court of Massachusetts, filed March 29, 2019).”Page 14 of the 2024 FDD, Item 3
Outcome: “The parties settled on May 20, 2019 with Premium Service Brands, LLC agreeing to pay $190,000 to mutually terminate the contract and be able to pursue a new CMR vendor.”
In the Matter of 360 Painting, LLC f.k.a. 360 Painting, Inc., and Paul Flick
concluded
Government or regulatory action · 360 Painting, LLC (affiliate) and Paul Flick · filed 2016-02-23 · Securities Commissioner of Maryland · 2015-0477
“… Administrative Proceeding Before the Securities Commissioner of Maryland, Case No. 2015-0477, as modified by Order Modifying Consent Order dated January 4, 2017.”Page 15 of the 2024 FDD, Item 3
MMG-360 LLC, et al. v. Paul Flick, Home Service Franchising, Inc., 360 Painting LLC, Maintenance Made Simple LLC, et al.
settled
360 Painting LLC and related PSB entities; Paul Flick · filed 2011-04-06 · Court of Common Pleas, Cuyahoga County, Ohio · CV-11-752725
“MMG-360 LLC, et al. v. Paul Flick, Home Service Franchising, Inc., 360 Painting LLC, Maintenance Made Simple LLC, et al.”Page 14 of the 2024 FDD, Item 3
Outcome: “the parties signed a formal settlement agreement dated May 26, 2020 under which Defendants paid $100,000 to Plaintiffs in exchange for full general releases.” (page 15)

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

Disclosure signals that moved the score

How this shows up in the verdict

Litigation is affiliate PSB Group, not franchisor itself

The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.

Before you weigh a lawsuit

How to read Item 3

A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.

Questions worth asking current and former franchisees, using the contact list in Item 20:

Were you, or anyone you know in the system, party to a dispute with the franchisor?
Was it resolved by settlement, arbitration or a court, and on what terms?
Has the number of disputes gone up or down since you signed?

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