FDD Items 3 & 4 · 2026 filing
Pillar To Post litigation history
What Pillar To Post 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
- $25K
- 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
1 prior action as plaintiff (Pillar To Post v. MS Home Inspections LLC - breach of franchise agreement, trademark infringement; settled March 2026, $25,000 award). 1 prior action as defendant (KJ Loughery Inc. v. Pillar To Post - wrongful non-renewal master franchise; settled February 2018, franchisor purchased master franchises in PA and NJ).
Disclosure signals that moved the score
How this shows up in the verdict
- Two litigation cases including master franchisee dispute — suggests franchisor-franchisee relationship strain and potential disputes over performance standards and renewal terms
- 5-year term with no stated renewal protections — master franchisee litigation over non-renewal signals potential franchise termination/non-renewal risks
- Going Concern = False — unclear what this means operationally; needs clarification on franchisor financial stability
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?