FDD Items 3 & 4 · 2026 filing
Ideal Siding litigation history
What Ideal Siding 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
- 2
- 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) Washington DFI Securities Division v. Ideal Siding Franchising (USA) Inc. - Consent Order (Oct 2022) resolving claims of offering unregistered franchise to WA residents via website; $3,000 penalty, no admission of fault. (2) Dunn v. Isco Corp 1 d/b/a Ideal Siding Boulder, Rick McCarthy, and Ideal Siding Franchising (USA) Inc. (Boulder County, CO, filed June 2024) - customers sued franchisee and franchisor (added via Second Amended Complaint July 2025) under Colorado Consumer Protection Act over dissatisfaction with workmanship; franchisor disputes personal jurisdiction and legal sufficiency; trial set for week of August 24, 2026; damages amount not yet specified.
Item 3 (litigation) · 2 matters disclosed · 1 pending listed
Litigation cases
The franchisor
Pending (1)
Justin Dunn and Stephanie Dunn v. Isco Corp 1 d/b/a Ideal Siding Boulder, Rick McCarthy and Ideal Siding Franchising (USA) Inc.
pendingBrought by the franchisor · filed 2024-06-11 · District Court, Boulder County, Colorado · 2024CV30512
“… District Court, Boulder County, Colorado, Civil Action No. 2024CV30512.”Page 10 of the 2026 FDD, Item 3
Concluded (1)
In the Matter of the Department of Financial Institutions v. Ideal Siding Franchising (USA) INC.
concludedGovernment or regulatory action · filed 2022-10-11 · State of Washington Department of Financial Institutions, Securities Division
“… (State of Washington Securities Division).”Page 10 of the 2026 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.
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?