FDD Items 3 & 4 · 2026 filing
Mosquito Joe litigation history
What Mosquito Joe 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
- 1
- Item 3, as counted in the filing
- Largest disclosed settlement
- $5K
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
Mosquito Joe SPV LLC v. Jim Drew Bailey Jr., Eld 2.0 Inc., and Taide Martina Bailey (McLennan County, TX, filed Dec 2022) - franchisor sued former franchisees for breach of franchise agreement (unpaid direct marketing fees); defendants counterclaimed in Wisconsin alleging fraudulent inducement and Wisconsin Fair Dealership Law violations. Texas court and appellate court both ruled in franchisor's favor; Wisconsin case dismissed. Separately, an affiliate (Window Genie's predecessor) entered a 2017 Consent Order with California over franchise-advertising filing violations (not involving the Franchisor).
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
No bankruptcy proceeding involving the Franchisor itself is disclosed. Item 4 discloses Chapter 11/insolvency proceedings of portfolio companies controlled by KKR (Franchisor's ultimate owner) at the time of their bankruptcy, none of which involved the Franchisor: Marelli Holdings Co. Ltd. (2025), The Collected Group LLC (2021), Envision Healthcare Corporation (2023), Genesis Care Pty Limited (2023), IPI Legacy Liquidation Co. (2023), and Café Coffee Day (2021/2024, India insolvency).
Disclosure signals that moved the score
How this shows up in the verdict
- Active litigation from three separate franchisees alleging breach of contract, fraudulent inducement, and misrepresentation—indicating systemic dispute patterns
- Disputed direct marketing program at center of litigation raises questions about franchisor support model and lead generation reliability
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?