FDD Items 3 & 4 · 2026 filing
Rainbow Restoration litigation history
What Rainbow Restoration 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 · an officer
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
Rainbow International/Grounds Guys v. Cheyenne Partners LLC and Jason Alan Kitts (breach of non-compete, trade secrets, unpaid fees) - franchisor prevailed, awarded ~$541K plus attorneys fees, currently on appeal/rehearing. Also Rainbow International SPV LLC v. Rapid Response Disaster Services LLC et al. (suit to collect monies owed, filed Oct 2025).
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, Plaintiffs v. CHEYENNE PARTNERS LLC AND JASON ALAN KITTS, Defendants
pendingBrought against a franchisee · Rainbow International LLC (Predecessor) and The Grounds Guys LLC · filed 2017-09-05 · McLennan County District Court, 170th Judicial District, Texas · 2017-2979-4
“… 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
Outcome: “On March 5, 2026, the Court of Appeals affirmed the decision of the District Court, in favor of Predecessor and TGG. Defendants filed a Motion for Rehearing on March 20, 2026, and that motion is currently pending.”
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 d/b/a Window Genie (predecessor to our affiliate Window Genie) and Richard Nonelle · filed 2017-11-14 · California Commissioner 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
bankruptcy proceeding) and not involving the Franchisor: Marelli Holdings Co. Ltd. On June 11, 2025, Marelli Holdings Co. Ltd, a global technology partner to the automotive industry, filed for Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware. In re. The Colle
Disclosure signals that moved the score
How this shows up in the verdict
- 2 routine litigation matters (franchisor mostly prevailing)
- Bankruptcies are unrelated KKR affiliates, not franchisor - low weight
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?