FDD Items 3 & 4 · 2026 filing

Boulder Designs® litigation history

What Boulder Designs® 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: $120K; 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

4 cases: (1) Jablonowski v. Mogavero et al. (2018) - former franchisee suit; settled $120,000; (2) Boulder v. Town & Country Lawn Care (2020) - trade secret/breach; settled $20,000; (3) Boulder v. Sanford and Red Art (2021) - trade secret/breach; settled with termination fee; (4) Boulder/Border Magic v. Unlimited Concrete Designs (2022) - noncompete enforcement; dismissed April 2024

Item 3 (litigation) · 4 matters disclosed

Litigation cases

The franchisor

Concluded (4)

Border Magic Franchising, LLC and Boulder Designs Franchising LLC v. Unlimited Concrete Designs, LLC, Patrick Drake, and Angela Miller
concluded
Brought by the franchisor · filed 2022-10-26
“Border Magic Franchising, LLC and Boulder Designs Franchising LLC v Unlimited Concrete Designs, LLC Patrick Drake, and Angela Miller.”Page 10 of the 2026 FDD, Item 3
Boulder v. Sanford and Red Art
settled
Brought against a franchisee · filed 2021-06-14 · District Court of McLennan County, Texas · 21-0846-C26
“Boulder v Sanford and Red Art (Case No. No. 21-0846-C26), in the District Court of McLennan County, Texas, filed on June 14, 2021.”Page 10 of the 2026 FDD, Item 3
Boulder Designs Franchising, LLC v. Town & Country Lawn Care and Landscape, Inc., et al.
settled
Brought against a franchisee · filed 2020-09-20 · U.S. District Court for the Southern District of Illinois · 3:20-CV-00992
“Boulder Designs Franchising, LLC v. Town & Country Lawn Care and Landscape, Inc., et al (Case No. 3:20-CV-00992), in the US District Court for the Southern District of Illinois, filed on September 20, 2020.”Page 10 of the 2026 FDD, Item 3
Jablonowski, et al. v. Mogavero, et al.
settled
Brought by a franchisee · filed 2018-11-14 · District Court of McLennan County, Texas · 2018-4170-4
“… in the District Court of McLennan County, Texas (Case Number 2018-4170-4). On November 14, 2018, the plaintiff, our former franchisee and its principals sued us, Mogavero Investments, LLC, and our Chief Executive”Page 9 of the 2026 FDD, Item 3
Outcome: “the parties entered into a confidential settlement agreement wherein Boulder agreed to pay $120,000 and the parties released each other from any and all claims, causes of action, suits, or debts.”

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

Deceptive trade practices lawsuit by former franchisee signals potential misrepresentation in FDD or recruitment
Three franchisor lawsuits against franchisees indicate enforcement issues, trade secret disputes, and possible financial underperformance

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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