FDD Items 3 & 4 · 2026 filing
ShelfGenie litigation history
What ShelfGenie 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
- $2.0M
- 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 concluded multi-jurisdiction (Ontario/Virginia) breach-of-dealer-agreement and confidentiality case brought by Predecessor/affiliates against former dealers, resulting in a 2015 judgment ($2M damages + $83K fees + $350K punitive to each plaintiff) later settled with mutual releases in 2020. Separately, an affiliate (Window Genie's predecessor FOR Franchising) settled a 2017 California Franchise Investment Law consent order ($5,000 penalty) for failing to submit ads for review - did not involve the Franchisor.
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
No bankruptcy proceedings involving the Franchisor. Disclosed (as required) are Chapter 11/insolvency proceedings of several unrelated KKR portfolio companies (Marelli Holdings, The Collected Group, Envision Healthcare, Genesis Care, IPI Legacy Liquidation, Cafe Coffee Day) none of which involved the Franchisor directly.
Disclosure signals that moved the score
How this shows up in the verdict
- Bankruptcies are unrelated KKR portfolio cos, not affiliates
- 2 concluded litigation matters
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?