Skip to main content
FranchiseVerdict

FDD Items 3 & 4 · 2026 filing

Junk King litigation history

What Junk King 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
6
Item 3, as counted in the filing
Largest settlement, franchisor's own cases
$2.7M
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

Three prior actions: (1) Dumas et al. v. JKFSI (AAA arbitration, fraud/misrepresentation claims, settled Feb 2020); (2) Rondale Inc. v. JKFSI (AAA arbitration, area rep fee dispute, settled Feb 2020 for $2,721,380); (3) JK Georgia/JNKK v. JKFSI (CA Superior Court, franchise misrep claims, settled Mar 2018 for $110,000 + territory repurchase)

Item 3 (litigation) · 6 matters disclosed

Litigation cases

The franchisor and its predecessor

Concluded (3)

  • Rondale, Inc. vs. Junk King Franchise Systems, Inc.

    settled

    Brought by a franchisee · filed 2019 · American Arbitration Association · 01-19-0001-1633

    “The plaintiff, one of our area representatives, alleged that JKFSI breached its agreement by failing to report and share fees generated by a franchisee that operated in its territory and by failing to provide the plaintiff with an opportunity to exercise an option to purchase additional territory. The plaintiff sought $999,999 i”Page 23 of the 2026 FDD, Item 3

    Outcome: “On February 28, 2020, the parties entered into a settlement agreement in which, (i) neither party admitted any wrongdoing, (ii) the arbitration was dismissed with prejudice, (iii) the parties mutually released all claims against each other, (iv) we repurchased the area representative’s territorial rights, terminating all agreeme”

  • JK Georgia LLC and JNKK Enterprises LLC v. Junk King Franchise Systems, Inc.

    settled

    Brought by a franchisee · Junk King Franchise Systems, Inc. ('JKFSI') · filed 2017 · Superior Court of California, County of San Mateo · 17CIV04821

    “The plaintiffs, former franchisees, sought unspecified general, consequential, and incidental damages, attorneys’ fees and costs, rescission of the Franchise Agreement, an injunction, and a declaratory judgment. The plaintiffs asserted claims of breach of contract, breach of the implied covenant of good faith and fair dealing, v”Page 23 of the 2026 FDD, Item 3

    Outcome: “The complaint was dismissed with prejudice on March 12, 2018 after the parties entered into a settlement agreement whereby JKFSI agreed to (i) pay $110,000 to JK Georgia LLC, (ii) assume JK Georgia LLC’s truck loans, and (iii) repurchase the territory and assets from JNKK Enterprises LLC for an initial payment of $15,000 and $13”

  • Sidney J. Dumas, Sand Pointe Properties, LLC, ECO-X-PRESS, LLC v. Junk King Franchise Systems, Inc.

    settled

    Brought by a franchisee · Junk King Franchise Systems, Inc. ('JKFSI') · filed 2015 · American Arbitration Association · 01-15-0005-3308

    “The plaintiffs, former franchisees, sought unspecified damages, general, economic, compensatory, special damages, punitive damages, costs and attorney fees in excess of $75,000 claiming that, as amended, JKFSI caused them to purchase a franchise as a result of fraud, negligent misrepresentation, promissory fraud, and also commit”Page 23 of the 2026 FDD, Item 3

    Outcome: “On February 28, 2020, the parties entered into a settlement agreement in which the parties mutually released all claims against each other and agreed to dismiss the arbitration with prejudice by May 3, 2020. Rondale, Inc. vs. Junk”

Status not stated in the filing (2)

  • Junk King SPV LLC as successor in interest to Junk King Franchise Systems, LLC v. Eby Management Incorporated, David Lee Eby Jr., and Joan E. Eby

    Brought against a franchisee · filed 2025-01-23 · thirteenth Judicial Circuit, Hillsborough County, Florida · 25-CA-000535

    “… Case No. 25-CA-000535, file on January 23, 2025, in the thirteenth Judicial Circuit, Hillsborough Count”Page 24 of the 2026 FDD, Item 3
  • Donkae, Inc. v. Junk King SPV LLC

    Brought by a franchisee · filed 2023 · circuit court of the sixth judicial circuit in Pinellas County, FL · 23009285CI

    “Plaintiff then sued us in this action after we terminated EBY Management’s franchise rights. Plaintiff alleges tortious interference, civil conspiracy and fraudulent misrepresentation and seeks actual, consequential, and special damages, including lost profits, in an amount to be determined at trial, as well as a perma”Page 22 of the 2026 FDD, Item 3

Parent, affiliates, master franchisor and subfranchisor

Concluded (1)

  • The Commissioner of Business Oversight of the State of California v. FOR Franchising LLC d/b/a Window Genie and Richard Nonelle

    concluded

    Government or regulatory action · FOR Franchising LLC d/b/a Window Genie, 'a predecessor to our affiliate Window Genie', and Richard Nonelle, then-president of FOR · filed 2017-11-14 · Commissioner of Business Oversight of the State of California

    “The Commissioner alleged that FOR and Mr. Nonelle had violated Section 31156 of the California Franchise Investment Law by failing to submit to the Commissioner copies of two advertisements offering a Window Genie franchise before such documents were provided to California residents in 2013. In an effort to resolve the matter in”Page 24 of the 2026 FDD, Item 3

    Outcome: “would pay an administrative penalty in the total amount of $5,000 (which amount FOR paid) and (c) within 90 days of the date of the Consent Order, Mr. Nonelle and all persons employed by FOR who assis”

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 cases with fraud/misrepresentation allegations and settlements indicate pattern of franchisor-franchisee disputes

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?