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FranchiseVerdict

FDD Items 3 & 4 · 2025 filing

Heroes Lawn Care litigation history

What Heroes Lawn Care 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 & 4 at a glance

What the filing discloses

Cases disclosed
1
Item 3, as counted in the filing
Largest disclosed settlement
None stated
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

Smith et al. v. HPB Lawn Care LLC (E.D.Pa. No. 2:24-cv-4869): former franchisees claiming fraudulent misrepresentation, negligent misrepresentation, fraud in the inducement, and Ohio Business Opportunity Law violations; franchisor vigorously defending. Second case (Schaefer v. HPB Foam LLC) names affiliate only, not HPB Lawn Care LLC directly.

Disclosure signals that moved the score

How this shows up in the verdict

  • Two pending federal litigation cases alleging fraudulent misrepresentation and fraud in the inducement create material legal and reputational risk
  • Going concern status indicates franchisor financial instability or operational uncertainty

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?