FDD Items 3 & 4 · 2022 filing
Alair Homes Master Franchises litigation history
What Alair Homes Master Franchises disclosed about lawsuits, arbitrations and bankruptcy in the 2022 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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 2
- Item 3, as counted in the filing
- Largest disclosed settlement
- $500K
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2022
- Disclosures cover the prior ten years
Extracted from the 2022 Franchise Disclosure Document
Item 3: litigation
Bolahood v. Alair Enterprises Canada Ltd. et al. (Ontario Superior Court, Case #97929-16) - construction deficiency dispute involving a former Canadian franchisee, with cross-claims and third-party claims continuing. Alair Enterprises Canada Ltd. v. Leenan Construction Inc., Keenan George and Lee Forsberg (Court of Queen's Bench for Saskatchewan, File No. 1108 of 2019) - franchisor action against former franchisee for breach of non-compete/non-solicitation covenants seeking $500,000, with counterclaim alleging disclosure and support failures.
Disclosed in the 2022 Franchise Disclosure Document
Item 4: bankruptcy
Shane Duff, Director of Market Development, filed Chapter 7 in the Northern District of New York (Albany), Case No. 15-10098-1-rel on January 20, 2015; discharge entered April 21, 2015.
Disclosure signals that moved the score
How this shows up in the verdict
- Going Concern = False indicates corporate entity financial instability or structural weakness
- Litigation involving breach of non-compete and incomplete work indicates quality control and legal enforcement issues
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?