FDD Items 3 & 4 · 2026 filing
Budget Blinds litigation history
What Budget Blinds 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
- None stated
- 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 administrative consent order (2006, affiliate Aussie Pet Mobile, no monetary sanctions, Maryland franchise law violation) plus three franchisor suits against franchisees in the last fiscal year to collect royalty payments and fees (Michigan, Texas, Wisconsin, filed Jan-Nov 2025).
Item 3 (litigation) · 4 matters disclosed
Litigation cases
The franchisor
Status not stated in the filing (3)
Budget Blinds, LLC v. Eric J. Barenholtz et. al.
Brought against a franchisee · filed 2025-01-30 · 6th Judicial Circuit Court, Oakland County, Michigan · 2025-212639CK
“… Case No. 2025-212639CK, 6th Judicial Circuit Court, Oakland County, Michigan, filed on January 30, 2025.”Page 14 of the 2026 FDD, Item 3
Budget Blinds, LLC v. Luis Angel Lopez Trevino et. al.
Brought against a franchisee · filed 2025-04-04 · County Court, Hildago County, Texas · CL-25-1364-G
“… Case No. CL-25-1364-G, County Court, Hildago County, Texas, filed on April 4, 2025.”Page 14 of the 2026 FDD, Item 3
Budget Blinds, LLC v. Marathon Dreams, Inc. et. al.
Brought against a franchisee · filed 2025-11-24 · Circuit Court, Polk County, Wisconsin · 2025CV000334
“… Case No. 2025CV000334, Circuit Court, Polk County, Wisconsin, filed on November 24, 2025.”Page 14 of the 2026 FDD, Item 3
Parent, affiliates, master franchisor and subfranchisor
Concluded (1)
In the Matter of: Aussie Pet Mobile, Inc. and Ian Moses
concludedGovernment or regulatory action · Aussie Pet Mobile, Inc. (affiliate per Item 1; 'while under previous ownership') and Ian Moses · Administrative Proceeding before the Securities Commissioner of Maryland (Securities Division of the Office of the Attorney General of Maryland) · 2004-0162 - 2005
“… (Administrative Proceeding before the Securities Commissioner of Maryland; Case No. 2004-0162 - 2005) On January 25, 2006, Aussie Pet Mobile, Inc., while under previous ownership, entered into a Consent Order with the Securities Division of the Office of the Attorney General of Maryland (the “Division”)”Page 14 of the 2026 FDD, Item 3
Outcome: “While the Consent Order contained no monetary sanctions, it required the franchisor to cease and desist from the offer and sale of franchises in violation of the Maryland Franchise Law.”
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 litigation including franchisor collection suit against franchisee (GTHI, LLC) indicates payment/compliance disputes
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?