FDD Items 3 & 4 · 2026 filing
The Brothers that just do Gutters litigation history
What The Brothers that just do Gutters 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
- 5
- Item 3, as counted in the filing
- Largest disclosed settlement
- $215K
- 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
Item 3 discloses: (1) a 2016 Virginia Securities Division Settlement Order against predecessor The Brothers Franchising, Corp. for an unregistered franchise sale ($2,500 penalty); and four matters involving affiliates - Executive Home Care Franchising v. Marshall Defendants (arbitration lost, $215,386 awarded against Executive Home Care); Executive Home Care v. Specialized Home Care Providers (settled, Defendants paid $55,000); CALLRN/Assisted Living Locators v. Vasia Corp/Mishkin/Clark (settled, $112,500 paid to franchisees); and CALLRN/ALL v. JL2 Holdings/Dickerson/Cohen (settled, $46,190 paid to franchisees).
Disclosure signals that moved the score
How this shows up in the verdict
- Four litigation matters (mostly affiliate/predecessor)
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?