FDD Items 3 & 4 · 2026 filing

Interim Healthcare litigation history

What Interim Healthcare 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: 7; 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

Multiple pending/concluded suits involving franchisee disputes (wrongful death notice, unpaid royalties, territory encroachment), and a resolved 2019 NY federal suit by Community Care Companions (settled 2025), a JAMS arbitration for unpaid legal fees, and a Texas/Florida Falcon Healthcare franchise dispute resolved via a $17,062,294.09 settlement/transition agreement; affiliate Coverall North America had a 1994 FTC consent decree with $100,000 civil penalty.

Item 3 (litigation) · 7 matters disclosed · 3 pending listed

Litigation cases

The franchisor

Pending (3)

Interim Healthcare Inc. v. Henri Sanan and Henri Sanan, LLC
pending
Brought by the franchisor · filed 2026-02-01 · Circuit Court of Wisconsin, County of Kenosha · 2026 CV 000161
“… (Wisconsin, Circuit Court of Wisconsin, County of Kenosha, Case No. 2026 CV 000161 (Feb., 2026)).”Page 24 of the 2026 FDD, Item 3
Outcome: “This franchise was terminated in 2025 with a remaining royalty obligation that has not been satisfied.”
MBC Holdings, Inc. dba Interim Healthcare of Englewood, NJ v. Interim Healthcare Inc. and 360 Degree Care, LLC dba Interim Healthcare of Ridgewood, NJ
pending
Brought by a franchisee · Superior Court of New Jersey, Bergen County · CPM-L-005331-25
“… (Superior Court of New Jersey, Bergen County, Case No.: CPM-L-005331-25).”Page 24 of the 2026 FDD, Item 3
Outcome: “Interim has answered the Complaint and denied the allegations. The matter will now proceed to discovery.”
Quital v. Clemson Heritage, LLC; Clemson Heritage Assisted Living, LLC; Interim Healthcare, Inc.; SSMG, LLC; Teneshia Harrison; and Tosha Garza
pending
Brought by a third party · South Carolina, Anderson County Court of Common Pleas · 2025-NI-04
“… (South Carolina, Anderson County Court of Common Pleas, Civil Action No. 2025-NI-04)”Page 23 of the 2026 FDD, Item 3
Outcome: “The company has answered and has taken the position that it is not a proper party to such a lawsuit and should be dismissed in favor of a franchise partner that provided services to the decedent.” (page 24)

Concluded (3)

Community Care Companions, Inc., Mark Gatien, and Alexander J. Caro v. Interim Healthcare, Inc.
concluded
filed 2019-08-27 · United States District Court for the Eastern District of New York · 19cv4870 (DRH) (ARL)
“… (United States District Court for the Eastern District of New York, Case No. 19cv4870 (DRH) (ARL)).”Page 24 of the 2026 FDD, Item 3
Outcome: “In September of 2025, the parties mediated and resolved the lawsuit. As part of the lawsuit and resolution, Community Care terminated its franchise agreement with Interim. This lawsuit has been dismissed.”
Interim HealthCare, Inc. v. J. Brandon Durbin, James Bullard, Jennifer Bullard, Falcon Healthcare, Inc., Interim Healthcare of West Texas, LLC, Capital Homecare LP, Central Texas Homecare, LLC and New Mexico Healthcare Services, LLC
concluded
Brought by the franchisor · United States District Court for the Southern District of Florida · 0:21-cv-62561-BB
“… No. 0:21-cv-62561-BB (S.D. of FL).”Page 25 of the 2026 FDD, Item 3
Outcome: “Both sides dismissed all their remaining claims against any of the parties in the Florida and Texas actions as a condition of the TSA.” (page 26)
Within this matter, as the filing narrates it
- Falcon Healthcare, Inc., Brownwood Hospice LP, Great Plains Hospice LP, Waco Hospice LP, Permian Basin Hospice LP, Granbury Hospice LP, Bayou Homecare LP, Levelland Hospice LP, San Angelo Hospice LP, Falcon Panhandle Hospice LP, Plainview Hospice LP, Falcon South Plains Hospice LP, Falcon Holdings L
  concluded
  names the franchisor · filed 2022-01-20 · 237th District Court, Lubbock County, Texas · DC-2022-CV-0087, severed into DC-2021-CV-0440 and DC-2021-CV-0440A
  “… TD, Interim Healthcare of West Texas, LLC, Central Texas Homecare, LLC, and New Mexico Healthcare Services, LLC (collectively, “Plaintiff”) v. James Bullard and Interim Healthcare, Inc. (237th District Court, Lubbock County, Texas, Cause No. DC- 2022-CV-0087).”Page 25 of the 2026 FDD, Item 3
  Outcome: “The court issued a final judgment in November 2023 cancelling the franchise agreements subject to Interim’s right to appeal and awarding damages of approximately $6,800,000 including Falcon’s attorney’s fees and costs”
Counted as one matter, the way Item 3 groups it.
Michelman Robinson arbitration against Interim Healthcare Inc. for unpaid legal fees
concluded
JAMS · JAMS Arbitration No. 5425004271
“the law firm Michelman Robinson filed an arbitration action against Interim Healthcare Inc. for unpaid legal fees (JAMS Arbitration No. 5425004271. That arbitration action has also been resolved and dismissed.”Page 25 of the 2026 FDD, Item 3

Parent, affiliates, master franchisor and subfranchisor

Concluded (1)

United States of America v. Coverall North America, Inc.
concluded
Government or regulatory action · Coverall North America, Inc. · United States District Court for the Northern District of Illinois · 94 C 1178
“… (Civil Action No. 94 C 1178). On March 18, 1994, a Consent Decree was entered in the United States District Court for the Northern District of Illinois.”Page 26 of the 2026 FDD, Item 3
Outcome: “Without admitting liability, Coverall North America, Inc. agreed to pay a civil penalty of $100,000 and to be enjoined from not complying with the FTC’s franchise disclosure rule.”

One proceeding above is indented under the matter it belongs to because the filing narrates them inside it — an appeal, a consolidated case, a related arbitration. Each carries its own quote and page. They are counted with their matter, not as extra matters, so this list and the 7 Item 3 discloses agree.

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

Multiple litigation categories including wrongful death notice, wage/hour disputes, and historical consent decree indicate operational and compliance risks

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?

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