FDD Items 3 & 4 · 2026 filing
Mr. Electric litigation history
What Mr. Electric 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
- 2
- 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
One CA Dept. of Business Oversight consent order (2017) against a predecessor affiliate of Window Genie (not franchisor); franchisor initiated 1 lawsuit against a franchisee (Mr. Electric SPV LLC and Mr. Handyman SPV LLC v. Anbramar Consumer Enterprise Corp et al., filed Sept 2025) to confirm no franchisor breach of marketing obligations. No litigation against franchisor by franchisees disclosed.
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
Item 4 discloses bankruptcy proceedings of unrelated KKR-portfolio companies (Marelli Holdings, The Collected Group, Envision Healthcare, Genesis Care, IPI Legacy Liquidation, Cafe Coffee Day) not involving the Franchisor itself.
Disclosure signals that moved the score
How this shows up in the verdict
- Affiliate litigation (Window Genie, Molly Maid) signals potential systemic franchise compliance issues within parent company's multi-brand portfolio
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?