FDD Items 3 & 4 · 2026 filing
Rainbow International litigation history
What Rainbow International 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
- 3
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- None stated
- 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
Franchisor/Predecessor prevailed in a 2024 judgment (affirmed on appeal March 2026, rehearing pending) against former franchisees Cheyenne Partners/Kitts for breach of non-compete, trade secret misappropriation, and unpaid fees, receiving $541,036 (plus $71,773 to affiliate Grounds Guys) in damages; defendants' counterclaims under Michigan Franchise Investment Law, Sherman Act, fraud, etc. were all denied. Separately, franchisor filed suit in October 2025 against a franchisee (Rapid Response Disaster Services) to collect monies owed.
Item 3 (litigation) · 3 matters disclosed · 1 pending listed
Litigation cases
The franchisor and its predecessor
Pending (1)
Rainbow International, LLC and The Grounds Guys LLC v. Cheyenne Partners LLC and Jason Alan Kitts
pendingBrought against a franchisee · Rainbow International LLC (Predecessor) · filed 2017-09-05 · McLennan County District Court, 170th Judicial District, Texas; Tenth Court of Appeals of Texas · 2017-2979-4
“RAINBOW INTERNATIONAL, LLC AND THE GROUNDS GUYS LLC, Plaintiffs v. CHEYENNE PARTNERS LLC AND JASON ALAN KITTS, Defendants, in the McLennan County District Court, 170th Judicial District, State of Texas, Case No. 2017-2979-4, filed September 5, 2017.”Page 22 of the 2026 FDD, Item 3
Status not stated in the filing (1)
Rainbow International SPV LLC v. Rapid Response Disaster Services L.L.C., Christopher Dallas Nevill, and Emily Suzanne Nevill
Brought against a franchisee · filed 2025-10-02 · 414th Judicial District Court, McLennan County, Texas · 2025-2971-5
“… Case No. 2025-2971-5, filed on October 2, 2025, in the 414th Judicial District Court, McLennan County, Texas.”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
concludedGovernment or regulatory action · FOR Franchising LLC (a predecessor to our affiliate Window Genie) · filed 2017-11-14 · California Department of Business Oversight
“The Commissioner of Business Oversight of the State of California v. For Franchising LLC d/b/a Window Genie and Richard Nonelle.”Page 22 of the 2026 FDD, Item 3
Outcome: “FOR 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 assist in preparing franchise registrations or who assist in franchise selling would attend remedial education of eight hours of franchise law training courses per person (which requirement has been completed).” (page 23)
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.
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
No bankruptcy involving the Franchisor, its predecessor, or officers. Item 4 discloses bankruptcy proceedings of unrelated portfolio companies controlled by KKR (Marelli Holdings, The Collected Group, Envision Healthcare, Genesis Care, IPI Legacy Liquidation, Cafe Coffee Day) - none involve the Franchisor.
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?