FDD Items 3 & 4 · 2024 filing
Best Choice Roofing litigation history
What Best Choice Roofing 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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 2
- Item 3, as counted in the filing
- Largest disclosed settlement
- None stated
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2024
- Disclosures cover the prior ten years
Extracted from the 2024 Franchise Disclosure Document
Item 3: litigation
Case 1: BCR & Home Improvement v. Best Choice Roofing Savannah & Augusta (2018) - breach of contract/trademark infringement; settled with monetary payment. Case 2: BCR Franchising v. Herron et al (2023, refiled 2024) - breach of franchise agreement restrictive covenants; Tennessee lawsuit ongoing.
Disclosed in the 2024 Franchise Disclosure Document
Item 4: bankruptcy
CFO Andrea Morris filed Chapter 13 bankruptcy petition on June 6, 2018 (Case No. 3:18-bk-03774). Plan completed October 5, 2022; discharge entered October 28, 2022; case closed January 17, 2023.
Disclosure signals that moved the score
How this shows up in the verdict
- Going Concern status is False — indicates franchisor financial distress or structural issues despite positive aggregate numbers
- Two active/recent litigation cases involving breach of contract and trademark disputes signal franchisor-franchisee relationship dysfunction and legal exposure
- Explosive growth (63 units, 200% YoY) combined with litigation suggests system may be adding unprofitable units or experiencing early terminations
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?