FDD Items 3 & 4 · 2026 filing

Ace Handyman Services litigation history

What Ace Handyman Services disclosed about lawsuits, arbitrations and bankruptcy in the 2026 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: 4; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: $150K; As stated in Item 3

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

Filing year: 2026; Disclosures cover the prior ten years

Extracted from the 2026 Franchise Disclosure Document

Item 3: litigation

Item 3 discloses 5 distinct cases. Involving the franchisor: (1) Elizabeth Hessler v. Ace Hardware Corp. et al. (2025, Cook County IL) — pending consumer/construction-defect action naming franchisor, parent, and two franchisees; motion to dismiss filed. (2) Ace Handyman Services, Inc. v. Ace Hardware Corp. et al. (2020, Bexar County TX) — concluded trademark dispute, settled April 2020 for $150,000 paid to plaintiff. Parent (Ace Hardware) actions: (3) Cathay Bank v. Ace Hardware Corp. (LA Superior Court) — concluded, settled May 2022 ($1.1M total, $650,000 by Ace Hardware). (4) Advanced Caregivers/Hialeah Ace Hardware v. Ace Hardware Corp. (S.D. Fla.) — concluded class action, settled $25,000 each plaintiff, dismissed 2017. (5) The Hessler and Ace Handyman Services TX cases are cross-referenced under the parent's litigation but are the same cases as above.

Item 3 (litigation) · 4 matters disclosed · 1 pending listed

Litigation cases

The franchisor

Pending (1)

Elizabeth Hessler v. Ace Hardware Corporation, et al.
pending
Brought against a franchisee · filed 2025-09-10 · Circuit Court of Illinois, Cook County · 2025L011064
“… (Case No. 2025L011064, Circuit Court of Illinois, Cook County). On September 10, 2025, Elizabeth Hessler (“Hessler”) filed a consumer action against us, our parent, Ace Hardware, Sidney W. Canchester d/b/a”Page 13 of the 2026 FDD, Item 3

Concluded (1)

Ace Handyman Services, Inc. v. Ace Hardware Corporation et al.
settled
Brought by the franchisor · filed 2020-02-25 · 468th Judicial District, Bexar County, Texas · 2020-CI-03722
“… (Cause No. 2020-CI-03722, 468th Judicial District Bexar County, Texas).”Page 13 of the 2026 FDD, Item 3
Outcome: “the parties settled this matter, whereby the Plaintiff was paid $150,000 in consideration for our franchisees and us to immediately be permitted to use the ACE HANDYMAN SERVICES mark and the plaintiff’s agreement to discontinue its use of ACE and ACE HANDYMAN SERVICES.”

Parent, affiliates, master franchisor and subfranchisor

Concluded (2)

Cathay Bank v. Ace Hardware Corporation, et al.
settled
Brought by a third party · Ace Hardware Corporation (ultimate parent) · filed 2017 · Superior Court of the State of California, County of Los Angeles, Eastern District · KC069647
“… (Case No. KC069647, Superior Court of the State California, County of Los Angeles, Eastern District.) In February 2017, Cathay Bank (“Bank”) obtained several money judgments against Sentron International, Inc.”Page 13 of the 2026 FDD, Item 3
Advanced Caregivers, LLC d/b/a Hialeah Ace Hardware and William Bloodworth v. Ace Hardware Corporation
settled
Brought by a third party · Ace Hardware Corporation (ultimate parent) · filed 2012 · U.S. District Court, Southern District of Florida · 12-20082-CIV-Williams
“… (Case No. 12-20082-CIV-Williams, U.S. District Court, Southern District of Florida).”Page 14 of the 2026 FDD, Item 3

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

Active consumer litigation for defective work quality—core business risk exposure
Trademark infringement settlement in Texas indicates brand/operational vulnerabilities
Parent company fraud allegations involving franchisees raise system integrity concerns

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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