FDD Items 3 & 4 · 2026 filing

Ace Hardware litigation history

What Ace Hardware 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: 5; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: $1.1M; 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

One pending consumer/franchise-fraud-adjacent suit against Ace and Ace Handyman-related defendants (Hessler); three concluded matters (Cathay Bank successor-liability settlement $1.1M total/$650K by Ace, Advanced Caregivers class-type fraud claims settled $25,000 per plaintiff, trademark dispute with unrelated Ace Handyman Services Inc settled $150,000); plus one collection action against a former member for unpaid amounts

Item 3 (litigation) · 5 matters disclosed · 1 pending listed

Litigation cases

The franchisor

Pending (1)

Elizabeth Hessler v. Ace Hardware Corporation, et al.
pending
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 Ace, Ace Handyman Franchising, Inc.(“AHS Franchising”), Sidney W. Canchester d/b/a Ace Handyman Services Oak Park River Forest (“AHS Oak Park”), Anchor Court Ace Handyman Services a/k/a Anchor”Page 15 of the 2026 FDD, Item 3

Concluded (3)

Ace Handyman Services, Inc. v. Ace Hardware Corporation et al.
settled
filed 2020-02-25 · 468th Judicial District Bexar County, Texas · 2020-CI-03722
“… (Cause No. 2020-CI-03722, 468th Judicial District Bexar County, Texas). On February 25, 2020, Ace Handyman Services, Inc., a Texas corporation unrelated to Ace (“Ace Handyman Services”) filed a complaint and obtained a temporary restraining order against Ace Hardware Corporation, Ace Handyman Franchising, Inc., Ace Handyman”Page 16 of the 2026 FDD, Item 3
Outcome: “On April 16, 2020, the parties settled this matter for $150,000 allowing the immediate use of the ACE HANDYMAN SERVICES mark by Ace and the discontinuance of Ace and Ace Handyman Services by the Plaintiff.” (page 17)
Cathay Bank v. Ace Hardware Corporation, et al.
settled
filed 2017 · Superior Court of the State 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. (“Sentron”), a former Ace vendor, in the aggregate amount of $10,642,452, and had a receiver, Robb Evans & Associates LLC (“Receiver”)”Page 15 of the 2026 FDD, Item 3
Outcome: “On May 13, 2022, the parties settled this matter in consideration for the payment of $1.1 million to the plaintiffs, $450,000 of which was paid by co-defendant JMI, Inc. and $650,000 of which was paid by Ace Hardware.” (page 16)
Advanced Caregivers, LLC d/b/a Hialeah Ace Hardware and William Bloodworth v. Ace Hardware Corporation
settled
Brought by a franchisee · filed 2012 · U.S District Court, Southern District of Florida (transferred to the Northern District of Illinois) · 12-20082-CIV-Williams
“… (Case No. 12-20082-CIV-Williams, U.S District Court, Southern District of Florida). In January 2012, this former member and its owner brought a civil action against Ace on behalf of themselves and a putative nationwide class alleging that Ace defrauded them in connection with their decision to”Page 16 of the 2026 FDD, Item 3
Outcome: “On July 26, 2016, all of the plaintiffs settled for $25,000 each and the case was dismissed with prejudice on July 27, 2017.”

Status not stated in the filing (1)

Ace Hardware Corporation v. Pickerel Development Corp.
Brought against a franchisee · filed 2025-07-14 · Hamilton County, OH · A 2503438
“Collection Cases Filed Against Former Members/Guarantors For Unpaid Merchandise, Services, Loans or Other Benefits: Name of Case Court Docket Number Date Filed Ace Hardware Corporation v. Pickerel Development Corp. Hamilton County, OH A 2503438 07/14/2025”Page 17 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.

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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