FDD Items 3 & 4 · 2025 filing
Help-U-Sell Real Estate litigation history
What Help-U-Sell Real Estate disclosed about lawsuits, arbitrations and bankruptcy in the 2025 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
- 1
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- $1K
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
One governmental action: January 31, 2018 Settlement Order with State of Washington (Case S-18-2367-18-CO01) related to unregistered sale of franchise in Washington in 2016; paid $1,000 penalty.
Item 3 (litigation) · 1 matter disclosed
Litigation cases
The franchisor
Concluded (1)
Matter with no printed caption
settledGovernment or regulatory action · State of Washington (Department of Financial Institutions) · S-18-2367-18-CO01
“On January 31, 2018, we entered into a Settlement Order case number S-18-2367-18-CO01_with the State of Washington and paid $1,000 penalty, related to our unregistered sale of a franchise in Washington.”Page 9 of the 2025 FDD, Item 3
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
- Prior litigation and unregistered franchise sale penalty (2018) indicates compliance/regulatory 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?