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 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed: 5; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: $2K; 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).

Item 3 (litigation) · 5 matters disclosed

Litigation cases

The franchisor and its predecessor

Concluded (1)

Matter with no printed caption
settled
Government or regulatory action · The Brothers Franchising, Corp. · Commonwealth of Virginia, State Corporation Commission, Division of Securities and Retail Franchising · SEC-2015-00056
“On January 6, 2016, our predecessor, The Brothers Franchising, Corp., entered into a Settlement Order with the Commonwealth of Virginia, State Corporation Commission, Division of Securities and Retail Franchising relating to an unregistered sale of a franchise territory in Virginia (case number SEC-2015-00056).”Page 15 of the 2026 FDD, Item 3
Outcome: “The Settlement Order: (a) required The Brothers Franchising, Corp. to pay a $2,000 penalty plus $500 for the cost of the investigation; and (b) prohibited The Brothers Franchising, Corp. and its successors from violating Virginia’s Retail Franchising Act in the future.”

Parent, affiliates, master franchisor and subfranchisor

Concluded (4)

CALLRN Franchise, LLC d/b/a Assisted Living Locators v. Vasia Corporation, Aaron Mishkin and Valerie Clark
settled
Brought by the franchisor · CALLRN Franchise, LLC (Assisted Living Locators) · filed 2022-03-03 · American Arbitration Association · 01-22-0000-9785
“… Case No. 01-22-0000-9785 On March 3, 2022, our affiliate, CALLRN Franchise, LLC d/b/a Assisted Living Locators (“ALL”), filed a demand for arbitration”Page 16 of the 2026 FDD, Item 3
Outcome: “... agreement under which the parties agreed, without any other exchange of consideration, to repurchase Respondents’ four Assisted Living Locators franchise territories for $28,125 each, for a total payment of $112,500.00, in exchange for the reconveyance of the territories, mutual Brothers Gutters Multi-State FDD April 24, 2026 10 releases and dismissals of all claims and counterclaims asserted in the arbitration ...”
CALLRN Franchise LLC and Assisted Living Locators Licensing, LLC v. JL2 Holdings, Inc., Lara Dickerson, Assisted Living Michelle Cohen, LLC and Michelle Cohen
settled
Brought by the franchisor · CALLRN Franchise, LLC (Assisted Living Locators) · filed 2020-06-03 · United States District Court for the District of Arizona · 2:20-cv-01091-MTL
“… Case No. 2:20-cv-01091-MTL On June 3, 2020, our affiliate, CALLRN Franchise, LLC d/b/a Assisted”Page 17 of the 2026 FDD, Item 3
Executive Home Care Franchising, LLC v. Marshall Health Corp., Well-Being Home Corp., Clint Marshall, Massare Marshall and Greer Marshall
judgment
Brought by the franchisor · Executive Home Care Franchising, LLC · filed 2015-02-03 · U.S. District Court for District of New Jersey; American Arbitration Association (01-15-0003-2409) · 15-ch-00760
“… U.S. District Court for District of New Jersey;”Page 15 of the 2026 FDD, Item 3
Executive Home Care Franchising, LLC v. Specialized Home Care Providers, LLC, Michael Creatore and Nicholas Kerpsack
settled
Brought by the franchisor · Executive Home Care Franchising, LLC · filed 2015-02-27 · U.S. District Court for District of New Jersey; American Arbitration Association (01-15-0003-4773) · 15-ch-01486
“… U.S. District Court for District of New Jersey;”Page 15 of the 2026 FDD, Item 3

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.

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?

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