FDD Items 3 & 4 · 2026 filing
Executive Home Care litigation history
What Executive Home Care 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
- 3
- 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
1 affiliate settlement order (Brothers Franchising/Virginia unregistered sale, 2016); 2 franchisor cases: EHC v. Marshall (arbitration award against franchisor $215,386, 2016); EHC v. Specialized Home Care Providers (settled $55,000 payment to franchisor, 2016)
Item 3 (litigation) · 3 matters disclosed
Litigation cases
The franchisor
Concluded (2)
Executive Home Care Franchising, LLC v. Marshall Health Corp., Well-Being Home Corp., Clint Marshall, Massare Marshall and Greer Marshall
judgmentBrought against a franchisee · filed 2015-02-03 · US District Court for District of New Jersey; American Arbitration Association (01-15-0003-2409) · 15-ch-00760
“Matters Involving Us And/or Our Officers Executive Home Care Franchising, LLC v. Marshall Health Corp., Well-Being Home Corp., Clint Marshall, Massare Marshall and Greer Marshall, US District Court for District of New Jersey;”Page 16 of the 2026 FDD, Item 3
Executive Home Care Franchising, LLC v. Specialized Home Care Providers, LLC, Michael Creatore and Nicholas Kerpsack
settledBrought against a franchisee · filed 2015-02-27 · US District Court for District of New Jersey; American Arbitration Association (01-15-0003-4773) · 15-ch-01486
“… US District Court for District of New Jersey;”Page 16 of the 2026 FDD, Item 3
Officers and directors (individuals, not the company)
Concluded (1)
Commonwealth of Virginia vs. Ken Parsons, Ryan Parsons & The Brothers Franchising Corp
settledGovernment or regulatory action · Ryan Parsons (our CEO), with The Brothers Franchising Corp. (predecessor of our affiliate BPF) · filed 2016-01-06 · Commonwealth of Virginia, State Corporation Commission · SEC- 2015-00056
“… Case No: SEC- 2015-00056 (January 6, 2016) On January 6, 2016, The Brothers Franchising Corp. (“TBFC”), Ken Parsons and Ryan Parsons entered into a Settlement Order with the Commonwealth of Virginia, State Corporation Commission.”Page 17 of the 2026 FDD, Item 3
Outcome: “The Settlement Order required TBFC to pay a $2,000 penalty plus $500 for investigation costs and prohibits TBFC and its successors (e.g., BPF) from violating Virginia’s Retail Franchising Act in the future.”
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
- Aggressive litigation history: franchisor sued former franchisees twice with counterclaims/arbitrations, plus affiliate unregistered sale settlement indicates compliance/governance issues
- No going concern statement raises questions about franchisor financial stability and long-term support capability
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?