FDD Items 3 & 4 · 2026 filing
House Doctors litigation history
What House Doctors 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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 24
- Item 3, as counted in the filing
- Largest disclosed settlement
- $190K
- 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
24 disclosed actions involving House Doctors/PSB affiliates and CEO Paul Flick: multiple pending franchisee/franchisor disputes (breach of contract, fraud, trade secret misappropriation) across Window Gang, 360 Painting, Rooterman, Pro-Lift Doors and Clean Juice-related entities; several prior settled franchisee suits (e.g., $190,000 to a CRM vendor, $100,000 in an asset-purchase dispute, $57,500 and $21,000 franchisee settlements); and multiple state regulatory consent orders/AVCs (Maryland, Illinois, Virginia, California, Washington) for FDD disclosure and registration violations, including penalties up to $72,500 plus $10,500 costs and a 36-month California sales bar against Paul Flick.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple fraud and breach of contract lawsuits against franchisor and CEO Paul Flick across affiliated brands (360 Painting, Window Gang, RooterMan) suggests systemic compliance issues
- Going Concern status is FALSE, which is a critical red flag indicating potential insolvency or business viability concerns
- Litigation involves franchise registration/disclosure law violations, suggesting franchisor has knowingly misrepresented material facts to franchisees
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?